Before the opening bell, Singlepoint, Inc. (OTC: SING) gave prospective shareholders some additional insight into its plan to become one of the cannabis industry’s first merchant processors through its SingleSeed subsidiary. The update comes on the eve of a landmark Election Day during which five states will vote on ballot initiatives to legalize cannabis for recreational use, while four others will be voting to either expand or establish the availability of medical marijuana. If all of these measures pass, the total number of states with comprehensive medical marijuana laws would grow to 28, and, thanks in part to the massive scale of the State of California, roughly a quarter of the U.S. population would live in an area where recreational cannabis is legalized.
With the national market for medical and recreational marijuana on pace to reach $22 billion by 2020, according to Arcview Research, the issue of banking within the industry is becoming increasingly difficult to ignore. Despite legalization at the state level, marijuana is still illegal at the federal level, and, as a result, federal law prohibits banks and credit unions from taking money generated from this industry. Some financial institutions have started serving the cannabis industry in recent months, after the U.S. Treasury and Justice departments said that they won’t go after institutions that closely monitor their clients and report suspected wrongdoing, but these pioneers are still in the minority.
By and large, big banks won’t touch the marijuana industry, meaning that, for many operating in the space, operations are cash-only. In addition to being inconvenient for customers, a lack of banking options adds significant security risks for business owners. In this morning’s news release, Greg Lambrecht, chief executive officer of Singlepoint, suggested that this trend could be in for a change in the near future.
“The cannabis industry is on the cusp of unprecedented liberties, and we are optimistic that as more states vote to legalize the drug, policymakers will have to take a second look at how banks will be involved in payment processing,” he stated. “When the industry becomes bankable, we will already be in on the action as a ‘first mover’ with mobile technology to revolutionize the cannabis merchant processing business.”
Ahead of this forecast shift, Singlepoint recently awakened SingleSeed. The cannabis-focused subsidiary was originally established several years ago, making an impact on the industry by offering payment processing services to dispensaries in Colorado and Washington. Although the banks put a stop to these services years ago, Singlepoint intends to capitalize on its existing foothold in the cannabis industry as it continues to evolve across the country.
“Amid the rapid changes in the cannabis industry, we are geared up to offer innovations that will usher continued advancement while providing safe and secure ways to transact monies for business owners who operate their businesses within the boundaries of state laws and guidelines set forth for banks by federal authorities,” Lambrecht concluded. “SingleSeed will emerge as a trailblazer in providing consumers with convenient and secure purchases, while dispensaries benefit from accelerated growth and ‘bankable’ finances. We see it as a win-win-win situation.”
For more information, visit the company’s website at www.Singlepoint.com
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