Cryptocurrency scheme lets customers purchase legal marijuana with bankcards
Pro-cannabis cryptocurrency startup GreenMed has become the world's first one-stop shop for electronic payments in the legal marijuana industry, according to a press release.
The GreenMed platform allows customers to pay for legal marijuana with credit and debit cards. Apart from allowing card payment at dispensaries, the platform also allows users of the GreenMed app to prepurchase for quick pickup.
GreenMed uses an ERC20 Ethereum token-backed application and electronic payment processing technology in conjunction with Ethereum blockchain to execute credit card transactions.
Due to strict federal regulations, banks have been unable to partner with legal marijuana dispensaries, making cryptocurrencies such as Ethereum the only option to enable the $5 billion industry accept mainstream electronic payments. Purchasers can also choose to pay with digital currencies.
Merchants can be issued GreenMed debit cards that allow them to withdraw funds directly from any ATM. The cards can also be used just like any debit card to make purchases at a point of sale device or via online payment gateways.
The legal marijuana industry in the United States is expected to reach $17 billion by 2021, an increase of more than 300 percent in market value since 2016.
GreenMed has announced the launch of token sale. It includes a four-week pre-ICO phase of the crowdsale, beginning Sept. 4. An official ICO campaign will follow the presale, the release said.
Participants in GreenMed presale can purchase GRMD against BTC and ETH payments.
According to the release, investors who participate in the first week of the pre-ICO receive a 40 percent bonus. The bonus percentage will continue through the next three weeks, but will drop 10 percent per week.