A legal feud arose between the Federal Reserve and the Fourth Corner Credit Union over the issues that marijuana companies have when coming face to face with banks. The Fourth Corner Credit Union was formed by advocates of marijuana and designed the organization to be “the only credit union in the world constructed from the ground up.” The issue is that the marijuana industry cannot open up a bank without permission from the Federal Reserve which affirms that “transporting or transmitting funds known to have derived from the distribution of marijuana is illegal.”
Mark Mason, founder, along with a group of entrepreneurs from Colorado preparing to start up the first “Marijuana Bank” ever that would solely work around the marijuana industry. The organization’s mission statement is to provide a “complaint” bunch of banking services to people in the marijuana industry. Although the marijuana activists are extremely passionate, the Credit Union’s “very existence is prohibited by federal law,” according to the Federal Reserve.
The filing claims say that they will not arrest bankers who take revenue from marijuana businesses into their establishments, but that is not the case for when one puts money into the Federal Reserve system. The Federal Reserve said in a court statement that transactions with this money were like “trading endangered species or trading with North Korea” which goes to show that the Fed does not approve of the marijuana cash. Gavin Anderson, a speaker at the Web Summit in Dublin in November 2014, showed that he thought cryptocurrency (such as bitcoin) would be a great solution for the marijuana industry.
“Legal marijuana industries could possibly be one of the big industries for bitcoin,” Anderson stated. “It gives marijuana growers a way of charging customers that doesn’t involve cash.”
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