Comments
Legalized Marijuana & Multi-Jurisdictional Banking: High Times for Community Banks
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Becca L
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Becca L,
User Rank: Author
8/30/2014 | 8:48:23 PM
Re: Good to see
I've read businesses have expanded around marijuana, like traditional bakeries that now also offer MJ-infused cookies or lollipops. I think by even dabbling or extending into drug markets they are putting themselves at risk with banks they've been working with for years. Local banks definitely have an opportunity to take on their business while the big players work out these kinks.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
8/26/2014 | 4:33:20 PM
Re: What a downer
The anonymity that Bitcoin offers would't have any advantage in terms of buying marijuana there since it's legal anyway. That doesn't preclude someone from wanting to use it to buy something else. So I was talking more from a legal perspective than from a consumer perspective I guess.
KBurger
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KBurger,
User Rank: Author
8/26/2014 | 4:00:38 PM
Re: What a downer
That implies that the primary use for bitcoins/virtual currencies is for illegal transactions (or at least transactions where anonymity is preferred). Maybe that's true, but I don't think bitcoin proponents would advocate that view.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
8/26/2014 | 3:52:09 PM
Re: What a downer
Well since it's legal there now I don't think anyone would care about getting that anonymity in Colorado. It's in all the other states where it's illegal that that problem would present itself.
KBurger
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KBurger,
User Rank: Author
8/26/2014 | 3:49:05 PM
Re: What a downer
I guess it's only a matter of time until someone figures out how to buy marijuana in Colorado with bitcoins. Perfect storm!
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
8/26/2014 | 3:41:48 PM
Re: What a downer
Yeah we're starting to see that now with Bitcoin, which seems much riskier at first look than mobiel payments because of the anonymity that it offers.
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
8/26/2014 | 6:28:42 AM
Good to see
It is nice to see the community banks in Colorado get a head start in grabbing business from the legalized marijuana business. Not only is it a great new revenue stream for the banks, but it is much needed. Since the industry is primarily cash, it is a perfect target for crime (and money laundering). So, bringing the business into community banks is a good first step.
KBurger
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KBurger,
User Rank: Author
8/25/2014 | 4:27:24 PM
What a downer
I'm sure you're right. I think that inevitably is going to start happening in less "controversial" areas such as mobile payments. Sooner or later the CFPB and others will turn their attention to the new non-bank players and work to hold them to the same standards/rules as banks. Then the bloom will be off the rose for them.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
8/25/2014 | 4:23:08 PM
Re: Window of opportunity
I think if non-bank providers tried to take some of these businesses on as customers, they would very quickly draw the attention of regulators, and might find themselves under some intense scrutiny very quickly.
KBurger
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KBurger,
User Rank: Author
8/22/2014 | 10:42:01 AM
Window of opportunity
Really interesting update on how this new business segment is being served, Robert. Despite all their complaints about being over-regulated there definitely are significant areas where community banks have competitive/operational advantages over bigger financial institutions. It's also interesting that this has happened so quickly -- but that makes sense, because I would imagine that legal marijuana commerce is another area that non-traditional/non-bank players may view as an opportunity. If consumers are increasingly "unbanked" by choice, no reason that the same couldn't apply to small businesses. So the window of opportunity is now.


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