Vaults full of cash and no bank to put it in!!
This is the current environment of recreational marijuana. Some think its absurd and I whole heartedly agree. How can states legally mandate dispensaries to pay taxes but cannot provide the banking system to support them? Banks lack of involvement has slowed the path to legal recreational marijuana to a complete halt. The banking industry is undeniably, the invisible force thats stifling the growth of the recreational marijuana industry. Even President Obama’s statement that the “government will not meddle in the affairs of states“, has not dispelled the apprehension that most states feel about legalizing medical marijuana.
Colorado leads the way
On November 19, 2014, the Colorado Division of Financial Services issued The Fourth Corner Credit Union a charter to operate, making it the first bank created solely for the marijuana industry. Fourth Corner has not opened for business yet. They are waiting on a the Federal Reserve to approve their master account. A master account is necessary to perform daily bank operations, such as money transfers, check cashing, etc. The Fourth Corner Credit Union About Page states:
“Our mission is to service the unique financial needs of the cannabis and hemp industries and their supporters. This full-service, compliance-focused financial institution is the first of its kind. Organized by a team of well-respected financial, legal, governmental, and cannabis industry leaders, TFCCU will work with our members to help make their financial goals a reality.”
There is no doubt that the Fed will approve their master account (optimism). Making Fourth Corner the first legitimate bank for the marijuana industry. Dispensary owners will breath a sigh of relief as they will now have a bank to place their large hoards of cash. Furthermore, if successful, Fourth Cash will more than likely kick start a big rush for other banks to get involved in the marijuana industry. Which is just what the industry needs to propel the it forward a little further.
The banking system is the key
In order for the marijuana industry to move further down the path to recreational legalization, the federal reserve has to ensure that they will support banks. It is the right thing to do and it is another step in the right direction.
I leave you with several questions. What are your thoughts on banks apprehension to providing service to businesses in the marijuana industry? Do you believe the Fed will approve The Fourth Corner master account? Please a comment down below. Also please share this story and follow us on twitter and like us on Facebook.