Cannabis is a lucrative business in any part of the world. Even though it is still considered illegal to keep in possession, sell or transport cannabis, the demand for this product is ever rising. Most US banks turn a blind eye to the emerging prospects of cannabis industry in the country due to its current illegal status. However, in Canada, financial institutions are beginning to back corporate cannabis producers.
In the US, possessing or selling marijuana is a federal crime even though it is now legal in one form or another in 23 states. As a result, US banking sector has largely ignored the emerging marijuana business without paying attention to its promising future prospects.
Steve Henn from NPR’s Planet Money team wanted to explore what the business would look like without a banking boycott.
According to Henn, the marijuana business in Canada is largely benefitted from the support of the banking sector. Unlike in the US, medical marijuana is completely legal in Canada. Banks in Canada offer flexible loans for marijuana growers; therefore they can easily procure their initial costs and operational costs without risking their business and private property in the hands of loan sharks.
With amply available funds, marijuana growers in Canada also tend to focus more on research and development. Canada will likely rise to become one of the most prominent marijuana producers in the world – all because of its flexible government policies and support from the banking industry.
It is important to realize that one industry in today’s highly competitive business world cannot thrive without the support of another. When US banks start to show interest in funding marijuana business, it will open up doorways for the US marijuana grower to enter the international marijuana business with further improvements in the research and development sector. Not only will it become a large foreign currency earner, but also create many job opportunities within the country.