Nevada’s New Policy Structure to Decipher the Marijuana Banking Problem
However, SiftPay also plans to cover various low risk industries including, Auto Repair, B2B, Business & Professional Services, Car Dealerships, Churches/Nonprofits, Contractors/Home Improvements, Coffee Shops/Cafes, C-Store/Independent Gas Stations, eCommerce, Fitness Studios & Gyms, Flooring, Grocery Stores, Legal Services, Liquor/Beer Stores, Lodging & Hospitality, Medical & Dental Offices, Pet Stores, Pharmacy & Drug Stores, Property Management, Restaurants & Bars, Salons & Spas, Schools, Universities & Educational Institutions, Veterinaries and more. These sectors can avail credit facilities and lending options from the leading player in the industry. Several industries can benefit from the spectrum of deal packages Siftpay offers. Their banking provisions extend over Puerto Rico, Europe, and USVI, while the experts specialize in high volume accounts. MATCH merchants and FOREX facilities can also avail the services at budget prices.
What can Siftpay do for CBD Companies?
Siftpay also sets up merchant accounts for retailers of the cannabis and CBD industry. Besides catering to cannabis retailers, Siftpay offers services including:
- Cannabis payment servicesBanking for cannabis industry
- Cannabis payment solutions
- Cannabis dispensaries payment processing
- Hemp payment processing
- Medicinal cannabis payment processing
- Recreational cannabis payment processing
- Medicinal marijuana payment processing
- CBD oil payment processing
- CBD products payment processing
- Storefront Dispensary
- Cannabis Delivery Service
- Online Seller of CBD
Experts at the company will assist you in establishing an account for CBD online banking login. The process will begin with CBD online banking registration, followed by the customer obtaining the login credentials. Your CBD merchant account or cannabis banking tab will be completely comprehensive and user-friendly. You can also get follow-up services by requesting for CBD credit card processing and CBD bank account number. Siftpay can also help you establish a CBD payment gateway. You can file for a CBD bank credit card or CBD payment for purchasing items with convenience. A CBD business account will enable you to perform routine financial activities with ease.
Nevada and its Ground-Breaking Idea to Finance Cannabis Businesses
Nevada strives to be the first state to formulate a formal banking system for the booming marijuana industry. Statements from officials have conceded that the industry reported more than $150 million in tax revenue in 2017. According to Nevada’s State Treasurer, the drug is still illegal under federal law, which has resulted in the million-dollar industry to be mostly cash-based. It implies that cannabis business owners cannot access lines of credits or open bank accounts to manage their deposits, payroll, and financial requirements. Since banks in the United States are federally insured, no bank in the country will accept cannabis businesses as legitimate clients.
However, under a three-year pilot program, prescribed by the state government, Nevada will issue electronic tokens to marijuana businesses and customers. The process is similar to the procedure established by a casino, where the players purchase chips to bet. According to reports, the state has established a premise analogous to the casino system where a player’s remaining chips can be converted into cash.
The initial idea entails the customers and businesses to use an application to buy tokens, which could then be used at any marijuana retail outlet to purchase cannabis, hemp or CBD. Consumers can use them at storefront dispensaries. These outlets could later pay growers, who, in turn, use tokens to tax the state. The office has been spending the summer consulting tech and financial companies to gauge the idea’s viability. While the state will declare the final parameters, Nevada will let stakeholders organically dictate the plan’s details.
Under the program, marijuana buyers and sellers will not be required to use the token program, and the state plans on choosing more than one vendor to implement it. Information evidence that it was crucial to formulate a system in the country that ascertained the business perspective and created an idea that was business-supported. The state expects to run its banking pilot program by July 2020.
Prevalence of a Banking System in other States
Other regions in the United States are looking for creative and alternative banking solutions to cater to the marijuana industry while the Congress fixes problems at the federal level. Some states have considered public state-run banks to serve marijuana businesses. However, reports from California have supposed the idea to be a risky venture.
Illinois, which very recently decriminalized the use of marijuana for adult use, pushed through legislation that would prohibit financial regulators from penalizing banks and lending companies from serving cannabis retailers. The bill is in the pipeline and is awaiting the governor’s signature.
The SAFE Banking Act proposed in the House of Representatives at the union level prevents federal regulators from disciplining financial institutions that align themselves with the cannabis retailers. Therefore, a reliable and efficient banking system must be in place to cater to the requirements of retailers operating in the industry.
Hemp and CBD Status in Nevada
It is legal to buy recreational marijuana and CBD products, including foods containing CBD, manufactured or sold through state-licensed dispensaries. These facilities are governed by the State of Nevada Department of Taxation. However, food products containing industrial hemp, manufactured, processed, and sold outside a licensed establishment is illegal under the state laws.
Industrial hemp and its seeds are a plant variety that has been catering to various industries, including edibles, skin creams, muscle and hair growth products, and nutraceuticals. In Nevada, you can legally produce industrial hemp under the supervision of the Nevada Department of Agriculture (NDA). The Farm Bill in 2018, legalized the production, sale, trade, and distribution of industrial hemp at the federal level. However, revisions in the proposal have resulted in the product being illegal in specific capacities. Moreover, CBD is an unapproved food additive and does not fall under Nevada’s ambit of legitimacy. Therefore, it is crucial to understand the nuances of the law before taking in commercial possession.