It can be hard to know what the cannabis industry is all about. It’s a very new market that has only in the last few years been allowed to legally exist, due to the many changes in legislation and regulation. Despite hurdling over some legality issues, it doesn’t stop there – there are plenty of other challenges in this sector, too.
Cannabis legalization is one of the most controversial topics in today’s society. It has been legalized for recreational use in some states, but not all. Some people are for it and others are against it. Cannabis can be used to treat ailments such as epilepsy, cancer, and pain management, among others. Cannabis consumption devices are also becoming more popular as the legalization of marijuana continues to spread. This is happening during a boom in the cannabis market, and it’s never been easier to enter this market. As seen on the Daily High Club, there are many different types of devices like dab rigs, bongs, and pipes. This type of innovation happens when regulation is possible.
Nevertheless, there are still numerous obstacles that must be overcome before cannabis can be considered a completely established industry. To obtain more information about this matter, this article will go over some of the challenges that the cannabis industry is now facing.
The Difficulty of Obtaining a Loan from Traditional Banks
The cannabis industry may be huge but like all other industries it does not come without challenges and one of the biggest is the ability to take out a loan from strict, traditional banks. The federal government’s prohibition on marijuana lasted for decades and prompted generations of people to have a negative view of the plant. As a result, traditional banks have become quite stingy on giving businesses related to the use or production of marijuana any loans. The reason why banks won’t grant these businesses any loans is because of the federal laws concerning marijuana. Banks are threatened with federal prosecution from the FBI if they try to take that course of action. Because loaning for cannabis businesses is extremely difficult, most of them operate in a cash-only system. They have operated this way for some time now all because the banks are afraid of penalization. Given the fact that various states have voiced support for the decriminalization of marijuana, it is not inconceivable to see a future in which financial institutions can lawfully conduct transactions involving marijuana.
Laws Prohibiting Cannabis Businesses in Some States
On the subject of laws and legality, you should be informed that cannabis is still yet to be legal in several states. This is a crippling problem for the cannabis industry. Marijuana is still being considered as nothing but a drug by the federal government and some states share the same sentiments. At least 14 states are still against the use of marijuana or do not have any plans in involving themselves with it whether for its recreational properties or its medical properties. As we continue forward to the future there will be changes concerning it, like how the way we see marijuana has changed. It is more than just a drug now, in fact, it even has medical uses and we might find even more uses in the future. The SAFE Act, in addition to providing a fresh perspective, will soon allow banks to rest easy knowing that the federal government will not interfere with their ability to provide loans for business expansion, which will ultimately benefit the entire industry. There is a future in marijuana, the people and even the state recognizes it.
A Lack of Research
On top of the issues regarding the prohibition of marijuana in some states and the difficulty of getting a loan from banks, there simply isn’t enough research on marijuana. To tell you the truth, research is scarce for the benefits of marijuana and its medical uses. The cannabis industry has made really strong claims on the benefits that their products provide, and without substantial proof, people will doubt their credibility. Customers will be wary of purchasing products and prospective investors may hesitate from investing in the industry. People will not be able to learn and understand the genuine benefits of marijuana use unless they have access to sufficient evidence and research to read about it. This lack of study is the primary reason for the negative connotations that people associate with cannabis usage in general, along with the unfavorable coverage it has received from the media and the federal government, which has classified it as a prohibited substance.