How HempCoin Works
HempCoin was created in 2014 and according to their website; they were one of the first 30 cryptocurrencies. It is based on PIVX blockchain code and they use Zerocoin protocol for privacy. Developers can contribute to this open-source software from anywhere in the world.
Who Uses HempCoin
Medical Cannabis Patients
Medical cannabis patients are one of many HempCoin users. Some legal dispensaries are starting to accept THC as currency. This has two main benefits for patients. The first is that they don’t need to worry about a paper trail for each transaction. If a person does not want to see a dispensary on their credit card bill, they would normally need to bring cash. The patient can instead trade Bitcoin for THC coins in order to pay for their medication.
Medical Cannabis Dispensaries
Dispensaries also benefit from cash-free transactions. Having large amounts of cash on site makes businesses more susceptible to robberies and employee theft.
Another benefit for dispensaries to utilize THC is for faster, less expensive transactions. It costs companies more money in fees associated with debit and credit than it would using HempCoin. If they only us Cryptocurrencies they can make every transaction more efficient.
Medical cannabis dispensaries can pay their marijuana suppliers using HempCoin. Many banks refuse to exchange fiat currency for these transactions, due to federal laws regarding marijuana. Using a cryptocurrency can clear up some of the red tape and save time.
The hemp crop is used in the production of beauty, household, and food products. In 2016, $688 million worth of hemp products were sold in the United States. HempCoin is expecting that this industry will grow once US restrictions are lifted.