If you’re not directly involved in the Nevada cannabis industry, you probably don’t pay it much mind. You go into your favorite dispensary, pick out a delightful product, head home, and have a blast. Easy-peasy-lemon-squeezy! However, if you’re involved in any portion of the Nevada cannabis supply chain, you know there's a big problem. Scratch that… a HUGE problem. However, there’s one company aiming to solve it. Enter Multichain Ventures and their ToKES Platform – a revolutionary new system that may be the solution to the industry’s problems that may soon revolutionize the Nevada cannabis industry.

The Canna Cash Crisis

When it comes to the Nevada cannabis industry, there’s an elephant in the room. And everyone in the industry knows what we’re talking about… CASH! You’ve probably noticed that none of the dispensaries accept credit or debit cards. Maybe you think it’s to cut down on costs. Or maybe it never even crossed your mind. Well, trust us it crosses ours minds on a daily basis. You may not give it a second thought when you go into a dispensary to purchase your products and use cash to do it. At this point, it may be second nature to you. Kind of like driving to work. It could just be a passing thought that floats in and out of your consciousness for a brief moment. However, for everyone in the industry (and we mean EVERYONE), this is a big problem.

Despite the fact that cannabis was legalized in Nevada years ago, it still remains a schedule 1 substance at the Federal level. As a result, banking institutions are too scared to deal with related funds from the legal cannabis industry. Hence why you have to use cash when you buy bud, drinks, edibles, tinctures, waxes, and oils at the dispensaries throughout Nevada. What may shock you is that this fear of federal intervention prevents the ENTIRE legal cannabis industry from using banking of any kind. From the plant growers to the transportation drivers to the extraction facilities to the product producers to the testing facilities to the dispensaries. Nobody has the “luxury” of using the banking system.

Consequently, the whole industry is forced to operate entirely on cash. If you want to pay your employees, you have to use cash.  Pick up payments for order placed by dispensaries... cash. When licensed cannabis delivery companies need to get paid, they’re dealing with stacks of cash… you get the idea. Even FEDERAL taxes have to be paid in cash. Talk about BS. It’s a huge pain and frankly, it’s extremely dangerous.

So how does the Nevada cannabis industry solve this huge pain in the ass? They can’t use banks and they’re stuck with dangerous amounts of money that could be stolen or confiscated at any time. It's a freaky situation to be in and the whole industry has basically been stumped on this one. Until now! The answer? Cryptocurrency of course!

ToKES to the Rescue

The ToKES Platform is a revolutionary new cryptocurrency product developed by Multichain Ventures. According to their whitepaper, ToKES Platform is “a blockchain-focused company building software solutions for merchant adoption of cryptocurrency and data provenance of supply chains within the legal cannabis industry.” They go on to note that their suite includes, but is not limited to, “point-of-sale processing software, e-commerce storefronts, mobile applications, and supply chain visibility tools.”

The platform was developed for the legal cannabis industry as a solution to the cash-only problem caused by federal prohibition resulting in banking restrictions. According to their whitepaper, ToKES created “a suite of software for tokenized transactions encompassing consumer to business, business to business, and business to state transactions (i.e., taxes). Within the cannabis industry, however, blockchain provides utility for more than payments, as ensuring the provenance and transparency of cannabis supply chain data from seed-to-sale is not only a preferred scenario for consumers but regulated by state agencies.”

In other words, this innovative company “produces supply chain visibility solutions on blockchain for integration with seed-to-sale software to ensure the accuracy and availability of cannabis data for regulators and business stakeholders.” And that’s not the only application. It will allow funds to be managed digitally, without the need for federal banks to approve monetary transactions. The industry can begin to fully regulate itself within the bounds of state law instead of draconian Federal regulations.

If all goes well with the pilot program (which has been fully approved by the state of Nevada), it's very possible that ToKES may be the savior the industry needs. And of course, there's huge potential for blockchain-based supply chain management services of this nature to make a mark, both in Nevada and in other states that have similar issues with their legal cannabis markets. Wish them luck. All of Nevada is rooting for their success.

Until Next Time

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* Full disclosure, the author of this piece owns a stake in TKS and is associated with the Nevada cannabis industry.