An Arizona fintech sandbox has partnered with a stablecoin project for the marijuana industry. Arizona fintech sandbox adds marijuana stablecoin issuer. Global exchange.
Startup Alta was accepted into the office’s fintech program, according to Arizona’s Attorney Generals Office. Alta is looking to address the banking needs of a $350 million statewide industry. It is the seventh startup to join to date. Globalxchange.
Businesses have been searching for alternatives, because the current federal regulations prohibit bank involvement with the marijuana industry. In addition to being a healthy candidate for fintech development, state regulators believe Alta’s dollar-pegged-stablecoin and payment network provide such an alternative.
Co-founder and CEO of Alta, Jesse Forrest, pointed out in a statement, the specificity of the product due to legal considerations:
“We help solve the banking challenges facing medical marijuana companies and their vendors. ALTA uses blockchain and geofencing technology to protect clients’ digital payments and transfers. Other digital payment companies require a bank account. We provide all the financial services medical marijuana companies need without requiring a bank account.”
Marijuana tainted transactions become legal sales providing an off-ramp for profits by purchasing ALTA coins. The startup offers cash pickups in armoured vehicles with instant transfers into dollars available. Alta’s stablecoin can be purchased via its platform. Global exchange.
Alta was welcomed to the program by State Representative Jeff Weninger and creator of the fintech program. Weninger said, “huge potential for stablecoin technology in cash-intensive businesses.” Globalxchange.
As legislators failed to pass a cryptocurrency tax bill last May, the state backing of Alta adds to a mixed bag for the Grand Canyon state. Even though the bill failed to be passed before the session ended, originally the bill sought to make state taxes payable in cryptocurrencies similar to Ohio. Globalexchange.
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