Cannabis is legal in more locations around the world than ever before—so surely paying for legal marijuana should be a smooth and worry-free affair? The reality is that cannabis products bought using a credit card, either online or in a brick and mortar store, could limit your travel to other countries. At least, that is the potential situation faced by millions of Canadians. Keep reading to find out what is driving this confusing situation, and how BitCanna ID solves the issue of payment privacy in a few simple steps.
The Issue With Legal Cannabis Payments
Canada took the monumental step of legalising cannabis in the final months of 2018. This decision was not only celebrated by the residents of Canada, but by all corners of the cannabis community. Prime Minister Trudeau’s justification was simple—make the substance legal and you take money away from the black market. The legal sale of cannabis products could be used as an additional source of tax revenue, while government-led regulations could be used to support a growing industry.
Despite a few hiccups with supply and demand, on the whole, Canada’s decision to legalise seems to have paid off. That is, until Canada’s federal privacy commissioner advised consumers to only pay for cannabis products in cash, not with a credit card. The warning comes over worries that although legal in Canada, the purchase of marijuana could be used against Canadian residents to prohibit their travel to areas where cannabis isn’t legal.
One such example is the US, where despite legalisation at a state level, the substance is still illegal under federal law. The concern is that payments made using a credit card could be traced back to consumers and used against them, even if the original purchase was legal.
Payment Services Are Still A Problem, Even Where Cannabis Is Legal
Many of us don’t give a second thought to submitting credit card details online, and in the majority of cases, we shouldn’t. Major payment providers offer protection, and websites are usually encrypted to protect personal information. However, in the rare instances that these databases are hacked or compromised, suddenly that information we didn’t think much about is a powerful tool that could be used against us.
Even in places like Canada, traditional financial institutions are still too slow to adapt to the rise in cannabis-related payments. Despite the booming industry, cannabis accounts for producers are scarce, and there is still uncertainty among consumers as to how a record of regular cannabis payments may affect their future. The issue for consumers is in how traditional banks and businesses store and maintain personal information. Fortunately, with BitCanna ID, retaining vast amounts of personal data is a thing of the past.
BitCanna ID Solves Payment Privacy Issues
With BitCanna, users are provided with a digital identity: a unique BitCanna ID. Once your identity has been established by BitCanna using an ID card or driver’s license, it is encrypted and hashed before being written to a unique BitCanna address. Since your identity has already been verified, there is no need to submit any additional personal information at the point of purchase. It also means that the personal information traditional fiat services store is no longer needed, and is instead deleted by BitCanna.
Apply this concept to the situation in Canada, and consumers would no longer need to worry about purchase history being used against them. Your unique and anonymous BitCanna ID is the trusted way to share your identity on the BitCanna network. Your BitCanna ID can even be accessed via our mobile app and used in cannabis social clubs or to buy goods in a brick and mortar dispensary.
The Future of Cannabis Payments
While the world waits for traditional institutions to catch up, BitCanna has paved the way for a future of secure payments that can be made without any fear of repercussions. As more countries consider the move to a legal cannabis industry, the problems faced by Canadians could expand. Thankfully, BitCanna already has the answer with BitCanna ID.