With voters in California having passed the Election Day ballot initiative to legalize marijuana for recreational purposes, estimates released in The Marijuana Business Daily (http://nnw.fm/mAY9j) reported that California’s recreational marijuana industry could eventually generate anywhere between $4.5 and $5 billion in annual retail sales. The article states that, in addition to enabling California to reclaim its mantle as the capital of the cannabis trade, it would also position the state as the most attractive market for business opportunities.
Proposition 64 now enables adults aged 21 and over to use and possess an ounce or less of marijuana for nonmedical purposes. Not only this, individuals will also be allowed to grow up to six plants in their homes. The Proposition imposes a 15% tax on sales, expected to generate an additional $1 billion in annual tax revenues, all according to an article in Business Insider (http://nnw.fm/FtNd0).
Although seven other states also legalized the use of recreational marijuana, California is the state with the largest economy, meaning the national legitimate weed industry has tripled in size, according to an article published in The Verge (http://nnw.fm/lG7wk). The article also states that “California’s marijuana industry could be bigger than its famed wine businesses.” The market for both recreational and medical marijuana is now expected to grow from $7 billion this year to a huge $22 billion by 2020.
That said, there are still issues that haven’t been resolved regarding the new legislation surrounding recreational marijuana in California. The state still needs to establish where marijuana fits regarding driving under the influence of the substance. Up to now the Drug Enforcement Administration (DEA) has rejected appeals to stop classifying marijuana as a Schedule I drug. Now, the DEA accepts tax money from the marijuana industry. However, because of the ban, companies are not able to accept credit cards or open bank accounts in many cases.
With so many companies currently aiming to capitalize on the new legislation surrounding recreational marijuana, such problems are expected to become more common. As a result, Singlepoint, Inc. (OTC: SING) subsidiary SingleSeed is gearing up its offering of credit card processing solutions for the cannabis industry.
Several years ago, the company established itself within the industry by creating key relationships and offering payment processing services to businesses in Colorado and Washington State. Today, SingleSeed believes that, with the high demand for marijuana on the horizon, it could lead to policy changes making banking more accessible for legal cannabis related businesses. SingleSeed will be collaborating with its technology partners to develop a marketing program designed specifically for businesses within the marijuana industry. This will allow consumers to make mobile debit and credit card payments.
For more information, visit the company’s website at www.Singlepoint.com
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