Until now, cannabis producers and marketers have had to rely on cash transactions because they couldn’t use the federal banking system for their business. But now, a Colorado credit union plans to change this by allowing payments for products to be made through regular banking transactions. This change would also apply to head shops, including those that sell items like Dab Rigs & Oil Rigs from places like Smoke Cartel.
This week, two lawsuits were filed in Denver challenging recent decisions by the U.S. Federal Reserve and the National Credit Union Administration. These decisions involved rejecting applications from Fourth Corner Credit Union. This credit union, which was established last year, aimed to serve Colorado’s marijuana industry but needed approval from federal insurers and regulators before it could start operating.
Earlier this month, the Federal Reserve denied Fourth Corner’s application. As a result, many cannabis businesses will have to keep using complicated banking alternatives. These range from paying utility bills with money orders to masking the smell of cash with Febreze to avoid detection.