California Proposes Crypto Tax Payments for Cannabis Firms

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California is well known as one of the most relaxed and forward-thinking states in America, and this latest development is about to take that philosophy to a whole new level. Governors are looking to pass Assembly Bill 953 (AB-953), which would allow anyone licensed under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to pay their cannabis license tax using a stablecoin. The cannabis industry is still relatively new and is challenging social constructs, making it the perfect fit for crypto payments.

Taxes Paid in Stablecoins

Earlier this year, Texas looked at making stablecoins a recognized form of tender in the state, and California is taking that thinking one step further. MAUCRSA licensees will be able to use any stablecoin they desire to pay their cannabis license taxes, so long as it’s pegged to the USD. It’s then up to each county in the state to decide what it does with the stablecoin – either converting it immediately using a third party payment processor or holding onto it through a digital wallet. Tether is still the most popular USD stablecoin around, but the new Gemini Dollar could see an increase in users as cannabis business owners look to the next generation of stablecoins.

Bitcoin for Bail

If you find yourself in trouble with the law while out in California, courts are now accepting Bitcoin as a bail payment. Great news for all crypto holders, as they can make a transaction to the state and be released in a matter of minutes rather than having to wait for the banks to open and funds to clear. California is full of A-list celebrities who frequently have clashes with law enforcement, and Bitcoin payments could be the perfect way to keep these dealings out of the public eye.

Crypto on Every Corner

This new Assembly Bill will likely push more cannabis dispensaries to start accepting crypto as a form of payment. Ever since Coinstar and Coinme joined forces to launch a network of change to crypto machines in the state, getting your hands on digital currency has never been easier. Crypto payments are new, fast, and cool – the perfect combination for any up and coming dispensary. Customers can grab crypto with ease, companies can now spend the crypto too – creating the perfect storm for mass adoption.

California has long been known as an innovative state that isn’t afraid of breaking the mold. If the Assembly Bill is approved, dispensaries will be able to start paying taxes using a stablecoin in 2020.