Washington Senators files new bill to prevent local cannabis businesses from using bitcoin

Senators Steve Conway and Ann Rivers have filed a new bill in the Washington State Senate to prevent local cannabis businesses from using Bitcoin as a mode of payment.

Under the proposed rule, businesses that work in the local marijuana industry would not be allowed to either pay for goods with digital currency or accept those kinds of payments from customers. The bill also includes a definition of “virtual currency” that explicitly targets “digital representation[s] of value used as a medium of exchange, a unit of account, or a store of value”, but excludes the “the software or protocols governing the transfer”.

There have been multiple reports in the past stating the unwillingness of mainstream banking and financial institutions when it comes to providing services to marijuana businesses. In the absence of proper access to financial services, the marijuana industry has started depending heavily on Bitcoin as an alternative. Many dispensaries have been accepting cryptocurrencies since 2014. If the bill gets passed in the Senate, these businesses will be in trouble as they will have no other alternative but to handle significant amounts of cash on a daily basis. It will also turn these businesses into potential targets for thieves.

The current issue is mainly due to the difference of opinion between the state and federal governments regarding the legality of marijuana. Unlike state laws, possession, sale, and use of marijuana remain a federal offence.