New Startup Will Give Marijuana Business Access To Banking
Tokken Marijuana Banking App
“Tokken is a secure mobile payment option coupled with identification checks that meet banks’ stringent requirements. It was founded by a former Marine and regulator at the U.S. Office of the Comptroller of the Currency, Lamine Zarrad.
“The trend is irreversible,” Zarrad told CNBC at the South by Southwest Festival in Austin, Texas. “Cannabis is not going anywhere.”
Here’s how it works. First, a purchaser agrees to let Tokken verify they can legally purchase weed. That verification may include checking mobile carrier records, gathering bio identification data used to log into your phone or triangulating who you are based on GPS coordinates. Once your information checks out, you can upload your credit card information to the app. When you want to buy marijuana, you simply provide a numerical code to give to the cashier.”
Marijuana Industry Banking
Should all marijuana-related businesses be allowed to use banks? Currently, cannabis related business are not allowed to use the public banking system. Banks are afraid that since the money earned is considered racketeering since all money was made illegally. The concern for banks is if the federal government ever does enforce federal laws. All money could be confiscated, and the banks themselves could be shut down.
Where Is The Money?
If you are in the marijuana industry chances are you are hiding a lot of money. Some people are investing their money in stocks or other companies. Know one wants a $100,000 just laying around their house or business. With so much cash this puts all worker & owners in a vulnerable position. With having so much cash on hand anything could happen. That’s why a security guard at a top dispensary could earn 80,000 a year or more. As the marijuana industry grows, the banking sector will eventually figure out a way to legally offer banking.