Like every other industry, the cannabis and CBD market face several challenges. One of the main challenges is that most banking institutions worldwide are unwilling to cooperate with industries dealing with illegal products at the federal level.
Despite the Farm Bill’s passing and the legalization of cannabis in several states, creating a checking account as a CBD merchant has its restrictions. Thus, many entrepreneurs in the CBD industry are left with no valid corporate bank account, and neither can they accept payments via cards.
This situation leaves them looking for alternatives that can help them transact business smoothly and swiftly. Given the CBD market’s current boom and the increasing demand for products like CBD oil and gummies, some CBD markets look to cryptocurrencies such as Bitcoin, Ethereum, and Litecoin as more convenient modes of payment.
The Popularity of Cryptocurrency In Ecommerce
Today, there are cryptocurrency processing technologies dedicated to eCommerce businesses. An excellent example of such a platform is Coinbase. However, not all online merchants have adopted this new technology. Crypto is still in its infant stages, and it takes a while before you see major retailers like Amazon and eBay accepting Bitcoin.
Nevertheless, innovative and forward-think businesses, especially in the CBD industry, are accepting crypto payments. And, the number of these early adopters is on the rise. According to Statista, Bitcoin’s market capitalization peaked about 400 billion USD in January 2021. Top CBD companies like CBDFx are riding the cryptos wave to bring their products to more customers.
Why You Should Consider Cryptocurrency For CBD Purchases
When you consider the relative newness of CBD products, it’s easy to see why legislation governing their use and sales is challenging for some to understand. Therefore, most credit card processors prefer to stir clear of this developing industry, making it difficult for eCommerce sites that sell CBD or cannabis products to receive approval and process credit cards.
Moreover, the advent of cyber-attacks and financial fraud have increased the need for more privacy among buyers online. Hence, it makes perfect sense to reconsider purchasing CBD through conventional methods like bank withdrawals and credit cards. Ideally, you want to make your first purchases with a small order, just to get a feel.
Here are some of the top benefits of paying for your CBD through crypto.
Benefits of Buying CBD With Crypto
1. Broadens The Customer Base
As mainstream financial institutions do not allow cannabis-related transactions, most merchants in the CBD industries had to rely on cash-only transactions. This option severely limits the reach of their products. For some consumers, cash-only transactions represent a more risky option.
On the other hand, some consumers consider it a better means of paying for their CBD products since they no longer had to deal with bank transactions risks. However, cryptocurrencies have solved this issue. Today, more CBD consumers can order products from suppliers, both home and abroad. All you need to purchase CBD with crypto is an email address and a smartphone.
2. Eliminates The Hassles of Bank Delays
As of November 2020, medical marijuana was legalized in the District of Columbia and 35 other states. Even though several other countries continue to legalize marijuana for recreational and medical use, cannabis and cannabis-derived products are primarily considered illegal around the world.
Therefore, businesses in this industry have to navigate a myriad of regulations and restrictions always. And it’s no different when it comes to cannabis-related financial transactions, even in states that have approved it. But the low-risk payment gateway provided by cryptocurrencies eliminates merchants and their customers’ worries during the buying and selling process.
3. Removes The Issues of Location-Based Payments
Due to the nature of the crypto technology, bills process through this technology can come from any side of the world. There is nothing like a location-based restriction as far you use Bitcoin, Ethereum, or any other crypto. This makes transactions relatively more accessible.
If you’re a CBD consumer, there’s no need to worry about running out of suppliers when you travel abroad. As long as the product is legal in your state, you can pay for it and have it delivered from anywhere on the planet. Plus, crypto transactions take no more than a few minutes or less to finish. Thus, making them way faster than most traditional payment options.
4. Relatively More Transparent
Another well-known benefit of choosing cryptocurrency as the preferred means of paying for your CBD is the blockchain. To some, this aspect may sound contradictory because blockchain is highly secure with better privacy. However, this alternative payment method is so great that they can provide all these benefits in tandem.
Every crypto transaction completed on a public blockchain is traceable and searchable. Every user can search a blockchain ledger of wallets and out where and how transactions took place. This is the highest level of transparency CBD consumers and merchants can ask for. It gives users access to purchase history whiles ensuring that nobody alters the records.
5. Removes Any Privacy Concerns
Do you know it’s virtually impossible to hack a blockchain tech? Since the introduction of cryptocurrency, nobody has successfully hacked it. An attempt to alter any block in the blockchain affects all other blocks in the entire chain. This ensures that all your funds, transactions, and records are safe and secure, beyond the reach of hackers and fraudsters.
Also, issues like chargeback frauds and identity theft are entirely impossible with cryptocurrencies. The digital ledger’s decentralized nature that holds cryptocurrency wallets makes it impregnable to cyber attackers looking to defraud buyers online.
So yes! Cryptocurrency is a safe payment method for purchasing CBD. However, many consumers are yet to realize the reliability and convenience that crypto offers as an alternative mode of payment, especially for CBD and cannabis merchants. It allows you to bypass financial restrictions, and the anonymity it provides both parties is ideal for anyone looking to keep their privacy intact.
Furthermore, the lack of regulation means that businesses, both old and new, get an even playing field. If you’re a customer, chances are most of your favorite CBD traders already accept payment through crypto. So why not follow suit and explore payment methods that have the potential to save you money and secure your funds?
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