Capitalising on Canada’s formal legalisation of marijuana and weed-related products for recreational use, a fintech company situated in the US’ northern neighbour has revealed plans to track cannabis through a blockchain-based solution.
“The Perfect Use For Blockchain Technology”
On October 17th, Canada became the western world’s first country to legalise the recreational use of marijuana in a surprising turn of events. Taking to Twitter to announce the news, Justin Trudeau, the forward-thinking 23rd prime minister of the nation, expressed that this drastic change was done in a bid to keep “profits out of the hands of criminals” and to “protect” local youth populations.
In tandem with the regulatory action, Vancouver-based DMG Blockchain Solutions Inc. issued a press release to reveal that it had commenced development on a blockchain-centric supply chain management system for the cannabis industry. Per the release, DMG, which is advised by Litecoin creator Charlie Lee, explained that it is currently in active discussions with key participants in this budding industry, which has been likened to the crypto market on multiple occasions.
More specifically, the startup explained that it, along with its technology and finance collaborators, are looking to ink partnerships with “major licensed producers, quality assurance labs, retail distributors, and government regulators.” Taking into account that blockchain is undoubtedly a global phenomenon, the announcement revealed that DMG intends to onboard a multitude of “significant industry players” in a bid to ensure that its supply chain solution is ready for deployment in Canada and in global marijuana markets.
This blockchain-focused solution, which doesn’t have a formal name at the time of press, will include a variety of capabilities, which include: onboarding new market participants, automating the marijuana supply chain through smart contracts, triggering product recall for the safety of consumers, and integrating licensed industry players. While DMG’s plans are ambitious with a doubt, no details were given on the firm’s timeline to test and launch the product.
Still, seeing that Canada’s local cannabis industry is expected to swell to a $23 billion valuation, it makes sense that the startup is making moves to announce its plans now. Moreover, considering the reports that indicate that the global marijuana market is likely to eclipse a $500 billion valuation in the near future, DMG’s move to monetize this space early-on is likely to produce mounds of dividends.
Speaking at CambridgeHouse’s recent Extraordinary Future conference in Vancouver, CEO Daniel Reitzik, who called the cannabis-related venture “the perfect use for blockchain technology,” noted:
“The first use of blockchain was Bitcoin and cryptocurrencies, but, the perfect use of blockchain technologies is actually supply chain management, especially for controlled substances like marijuana. So what we are doing is building a highway; we’re building an infrastructure for an unprecedented use of blockchain to manage the global supply of cannabis.”
Reitzik added that this is far more than just a distant ambition, pointing out that its unnamed primary technology partner, which reportedly holds a spot on the Fortune 100, has “three years of extensive experience in the cannabis [and blockchain] space,” which is second only to its pivotal relationships with regulators and firms. Touching on the federal government’s vision of marijuana in Canada, the CEO added that Cannachain, as he dubbed the system, will keep the formerly-illicit good out of the hands of criminals and youth through the transparency that blockchains have become known for.
To sum up DMG’s ambitions in one simple statement, as put by Reitzik himself:
“So just like there’s one global blockchain that manages Bitcoin, there is going to be one global blockchain that manages cannabis.”