When it arrives in New York, the medical marijuana industry will be an all-cash business.
New York’s five companies licensed to grow and sell medical marijuana under the Compassionate Care Act must grapple with the security, safety, and legal challenges of dealing in cash because they can’t keep it in banks like other businesses.
Federally regulated banks are often unwilling to work with clients whose money comes from the business of medical marijuana, the legality of which varies state to state. Licensees, dispensary employees, patients, and other affiliated vendors are therefore barred from using credit or debit cards, or holding banks accounts that contain money made from cannabis. The payroll and all business transactions go down in cash. Thousands and thousands of pounds of cash, sometimes in duffel bags.
Read the rest of Madison Margolin’s article in the Village Voice