Hostilities toward the legal U.S. cannabis industry are softening considerably, with signs of further removing cash and digital workarounds from a market that has long been shunned by traditional payment cards.
The most recent boost comes from an agriculture law, commonly called the 2018 Farm Bill, which President Trump signed into law on Thursday. The law legalizes hemp, greatly expanding its potential uses. While it did not affect the federal ban on marijuana, which is still on the list of prohibited narcotics, the law is still a welcome sign for agricultural banks, which had been wary of funding hemp farming.
This should have a downstream impact on cannabis payments, where a nascent market is building for e-commerce and debit cards.
“De-scheduling hemp will encourage financial institutions to begin offering mechanisms for non-cash payments in the cannabis industry,” said Tom Zuber, a partner at Zuber Lawler Del Duca, a