Canada became the first major economy to fully legalize marijuana. At the moment, the market receives 100 orders per minute, and happy citizens wait in lines to obtain an officially legalized product. If you thought that this news wouldn’t be about blockchain or crypto, you were wrong.
The Vancouver-based cryptocurrency company DMG Blockchain Solutions Inc. announced plans to launch a global blockchain platform for supply chain management in the legal cannabis industry. Right when it’s needed!
According to the company’s statement, it is currently in talks with industry representatives and regulators, intending to launch a platform that will meet specific legal requirements in this area.
Blockchain solution developed by DMG’s will be able to trace the product in real time, automatize transactions and the information flow among licensed product producers, distributors, and sellers. It provides all the necessary information on the process to the regulators, as well as reports to the auditing companies, the press release states.
The blockchain will have smart contracts at the base of all deals and will be able to track the low-quality products.
"The emerging cannabis industry demands product management solutions and blockchain is the most logical choice. We want to be the first to offer an enterprise-grade solution in partnership with leading technology providers and cannabis producers, processors and distributors. The first use of blockchain was bitcoin, but the perfect use is supply chain management for controlled products such as cannabis,” said Dan Reitzik, CEO of DMG.
He added that Canada is considered a global supplier of cannabis products, and the new platform will guarantee their legality and safety, as well as simplify tax reporting to industry participants.
Until yesterday, only the medical use of marijuana was permitted. Companies were exporting the product to the U.S. Tilray, a Canadian pharmaceutical firm, witnessed its shares reaching the “moon” after it started to import medical cannabis to the U.S., with a Drug Enforcement Agency (DEA) approving the trade.
According to Health Canada, more than 120 licensed cannabis manufacturers are registered in the country. One of them recently stated that labor shortages and problems with supply chain management can lead to a shortage of products on the market.
According to DMG, the cannabis industry in Canada is estimated at $23 billion, while 13 million consumers bring companies $6 billion in an annual revenue.
Earlier in September, the founder of the Galaxy Digital Bank, Mike Novogratz, compared the shares of manufacturers of legal marijuana in the U.S. with the BTC and ETH price skyrocket at the end of 2017.
"The prices of cannabis stocks today feel like bitcoin and ethereum did in December of last year," he said.
The so-called “Bitcoin Jesus” and CEO of Bitcoin.com Roger Ver has congratulated Canada with their move and shamed those countries, which have still not legalized drugs.
Congratulations to the people on drugs.— Roger Ver (@rogerkver) October 18, 2018
Shame on those still fighting the drug war. pic.twitter.com/avdoaZgYu4
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.