CannabisCoin developer DeltaNine announced on Labor Day that they were pegging 1 CannabisCoin at 1 gram of medical marijuana. In an effort to promote the “YesWeCANN Movement” and all its members. The CannabisCoin team agreed to adhere to a determined ratio of 1:1 for CannabisCoin to grams of the “new green.”
“There will be more announcements to be made as the time comes when participating dispensaries are ready with policy and procedures in place for accepting CannabisCoins. We will be developing a map based site that will mark the participating dispensary locations and other details.”
He also advised people to hold on to their coins. Another developer spoke up on the forums posting this,
“The next phase will be the point of sale system and the guidelines (currently active dev) for medical marijuana shops/dispensaries. Once that happens we are ready for the transactions,” and “We are currently developing the html5 wallet with QR and point of sale system to streamline processes first.”
Growers and suppliers who are apart of the YesWeCann movement have all agreed to peg the price of CannabisCoin to a gram of medical marijuana. This allows patients to purchase medical marijuana at a substantially lower price than if they did with cash or credit card. CANN is growing strands of medical marijuana, with their “CANNdy” strain being the closest to finalization.
Some “sweet” sounding stuff called CANNdy strains have been finalized and are out of Beta testing. CANN products will hit shelves immediately after the procedures have been established and streamlined. .
In reality, CANN isn’t the only crypto currency that has been developed for especially for the medical and nonmedical use of cannabis. Potcoin is also trying to become a standard form of payment for all types of cannabis users. The Federal Government has opened the doors for Bitcoin payment processing at medical marijuana dispensaries; though, some Bitcoin payment processors have turned right around to close them.
One of the longest standing myths about the US Dollar is that gold backs it. The Federal Reserve stopped backing the dollar with gold back in 1943 after Congress amended Section 16 of the Federal Reserve Act. After January 30, 1934 the dollar was no longer redeemable for gold. People fear Bitcoin and other crypto currencies because they are not backed, yet they don’t realize their dollar isn’t backed by any commodity.
Pegging CANN is essentially backing the currency with medical cannabis. This means if a gram of medical cannabis is selling for $10 than the coins value should be at $10. It’s a bold move by the developers and not one without risk. If the price of CANN doesn’t rise, people will be able to purchase their cannabis for less than the cost of production and if the price becomes too inflated people will lose their incentive to purchase with CANN. Either way, we all get to see some very interesting economics play out as this unique commodity-cryptocurrency agreement starts to take flight.
All Images from Shutterstock.