Is Crypto a Solution to The CBD Market’s Banking Woes?

The growth of any industry or business must be facilitated by good banking practices and financial regulations committed to supporting and not suppressing the business. Even after legalization in certain areas, CBD businesses still face banking hurdles due to specific legal measures that limit their banking capabilities and access to financial institutions.

The banking woes are affecting the growth of the CBD industry hence the need for alternatives to promote sales and industry profitability. There are other measures these businesses can exploit; however, the best step is to rely on cryptocurrency

The CBD Banking Woes

The 2018 Farm Bill has been a game-changer for the CBD industry. It has legalized the growth of industrial hemp, allowing small retailers of THC Gummies and other CBD-related products to grow hemp without any restrictions. However, the CBD industry is not about hemp alone, meaning other legal hurdles exist. CBD is not federally legal however other states have legalized its use for medical and recreational use. 

The second challenge is the use of CBD in various ways; so far, most states allow the use of CBD for medical purposes but reject its recreational use. In some states, it is legal for both purposes, but the fact that it is federally illegal makes banking the cash from CBD sales and money transfer transactions challenging. 

In some states, banks will allow you to bank the cash from CBD; however, you are banned from even opening bank accounts for CBD-related businesses in other states. This makes it challenging for distributors, growers, and even CBD buyers to secure or deposit the money in banks. Despite CBD companies being on the stock market, financial institutions still have a challenge about their legality; hence some institutions do not allow CBD bank accounts for fear of violating federal regulations.

Some banks, such as Swiss, have created branches in significant states to legalize CBD transactions; however, these banks are not widely available, and their operations are limited or unauthorized in certain states yet to legalize CBD. 

How Does Cryptocurrency Solve The Banking Woe?

Banks such as Swissx recognize cryptocurrency’s power in resolving the CBD industry banking challenges. First, cryptocurrencies are universally used, meaning the parties involved in the trade can exchange the goods for cryptocurrency regardless of location. Clients can pay sellers and distributors using cryptocurrencies such as bitcoin. The sellers will hold the crypto or use it for other purposes. Also, they can sell the crypto for cash and then bank it in their investment accounts.

Cryptocurrencies are less regulated, and there are no clear systems on how and what to use cryptocurrencies. This allows the CBD industry to circumvent legal restrictions and trade their products without violating any legal measures or being detected by federal authorities. Therefore, it is the best remedy for facilitating marijuana transactions in states where marijuana is illegal. 

The CBD industry can also rely on special cryptos created for the CBD industry to facilitate transactions. For instance, the Swiss X created the SWX coin, a bitcoin blockchain coin to facilitate CBD transactions, blockchain integration, and partnership with the industry. Despite facilitating CBD transactions, there is still a challenge CBD dealers must handle: the volatility of cryptocurrency. 

How Is Cryptocurrency Helping The CBD Industry?

The banking benefits of cryptocurrency to the CBD industry can never be ignored. There are other ways in which it is facilitating the industry financially. 

No cash required

Current banking regulations require people and firms to disclose the source of their finances. The need for disclosure is a challenge for CBD traders since they risk federal authorities investigating for dealing with federally illegal products. The cashless transaction makes it easier for traders and buyers to avoid federal scrutiny. The federal authority also hardly follows crypto transactions making it easier for traders to do their activities without guilt.

Lower Fees

Banks charge deposit fees and other fees on transactions. CBD traders avoid these fees since they do not have to deal with the banks directly. Due to federal restrictions, banks charge higher on transactions and banking activities involving CBD products. When you hold cryptos, you are not charged any deposit or security fees, and the value of your crypto rises faster than the value of the cash in your bank accounts.


The CBD industry and companies are more tightly regulated than other industries. Some of these regulations can lead to shortcuts in transactions, making it difficult to trace a company’s financial activities. When using cryptocurrency, you have a tamper-proof receipt for every transaction. This helps you follow all the transactions in the supply chain.

Global Transaction

Due to legal restrictions, there are places, countries, and states where you cannot trade CBD. Some banks do not accept CBD transaction procedures of money, making it challenging to globalize CBD sales. CBD companies must be willing to globalize their operations to realize more profits. Cryptocurrency is currently used globally, and you can sell products in any country and serve global customer needs without worrying about federal guidelines.  


Cryptocurrency is the true remedy to the current woes affecting CBD banking practices. It is not federally regulated and can be used globally without detection, making it easier for CBD dealers to sell their products. The transactions also charge lower transaction fees, and there is greater transparency than banking.