"An industry that employs hundreds of thousands of people, provides billions in economic benefits, and promotes safer alternatives to pharmaceuticals and commonplace vices continues to be treated like a pariah," said one cannabis entrepreneur.

Mastercard’s recent decision to prohibit the use of its debit cards at cannabis dispensaries highlights the challenges facing the legal marijuana industry. While the SAFE Banking Act would protect banks that work with cannabis businesses, it would not address the underlying issue of marijuana’s federal illegality which was Mastercard’s stated reason for the policy change. Advocates argue that comprehensive federal cannabis reform through decriminalization and legalization is ultimately needed to resolve these financial and banking issues plaguing the legal marijuana industry. Mastercard’s move demonstrates that piecemeal reforms are insufficient and that full federal decriminalization is the only sustainable solution.

I hope in my lifetime we will see federal decriminalization. Enough already!

  • Hillock@kbin.social
    10·
    1 year ago

    Even federally legalizing cannabis could not be enough to solve the issue. International banking makes this complicated. Uruguay faces this issue, cannabis is already legalized but cash only because international banks would have to stop doing businesses with local banks otherwise. Germany is also facing this issue in it’s attempt to legalize cannabis.

    Now I would hope the USA is big enough of a market and has enough influence to simply change this. Especially since it’s the United States Federal Reserve’s who prohibits cannabis-related operations. International provisions on money laundering would still be an issue.

    But the risk is always that American banks fear losing access to certain international markets outweighs the potential earnings from dealing with cannabis operations. So again, even if they are allowed to deal with them, they might opt out of it.

    • MycoMadness@reddthat.com
      2·
      1 year ago

      The SAFE banking act that was supposed to be voted on the senate floor this summer session would help transition into a free market for investment in cannabis. It’s been pushed till after the August recess, but apparently it has support on both sides (aside from amendments some politicians are trying to throw in).

      If passed it would allow banks and other investment opportunities to invest in cannabis businesses, which would likely motivate Mastercard to allow purchases.