Cannabis is one of the most commonly cultivated, trafficked, and illicit used drugs. According to the Controlled Substance Act of 1970, cannabis has been classified as a Schedule I drug. This means it has a high potential for dependency, no acceptance for medical usage, and its distribution is a federal offense.
Despite such limitations, cannabis is one of the hot button topics in today’s age. Its legalization is garnering significant attention from many investors, manufacturers, and researchers. According to New Frontier Data, the cannabis industry was estimated at $10.4 billion in 2018 and is expected to grow to $21 billion by 2021, which converted into more than 250,000 jobs in the country.
At present, cannabis is legalized in 33 states for medical usage and 10 states for recreational purposes. The number is expected to increase more in the coming future as the most population is favoring the legalization of cannabis across the whole country.
Cannabis is not limited to the healthcare industry because of its medical benefits — reduces opioids usage, provides relief from chronic pain, improves the quality of lives of cancer patients and many more. It is also boosting other industries, including agriculture, consumer products, and payment industry.
- Agriculture Industry: The growth of the legal cannabis market is tremendously increasing the demand for cannabis. Because of this, many growers are planning to extend the farming of cannabis and improve the productivity of cannabis plants.
- Consumer products: Smoking has always been a trendy and ubiquitous form of cannabis consumption. Recreational users prefer to smoke cannabis-based products in many different ways through various instruments. They either use hand pipes (bowls), water pipes (bongs), cigarettes (joints), or they use blunts for smoking.
This is causing manufacturing companies to manufacture different types of smoking pipes and increasing the market of consumer products.
- Payment Industry: Undoubtedly, cannabis is one of the high-risk assets. Hence, banks are reluctant to deal with any transactions related to cannabis or its products. This causes a big challenge related to the payment process. But with the emergence of fintech companies, it’s no more going to be a challenge.
Fintech companies have introduced cloud-loop blockchain technology which offers a secure and automated transaction for both: businesses and consumers. Moreover, they have developed a payment card that is registered to complete convenient, instant in-store or online payments for cannabis products.
From the medical sector to agriculture to payment, the cannabis is revolutionizing each sector. This shows that the cannabis market is here to stay for a long time, despite its cultural taboo.