For those servicing the new commodity in Colorado and Washington, things are beginning to work out for the better. A long time coming are some banking options that were not available a year ago.
Colorado speed bumps
In Colorado co-ops will be created that are to service accounts specific to the needs of the market with marijuana buyers and growers. Sellers might have a bit of an issue for a time, but all the other elements are falling into place. Marijuana Merchant accounts will be over seen by the state’s financial services commissioner.
Each co-op will do business very similar to that of a credit union, without the requirement of deposit insurance: Thereby, leaving each new business owner without that extra FDIC insurance, through the federal government, in case the institution fails. Deposit insurance is that little extra kick all other consumers get when they deposit money, and it seems a bit out of the ordinary for Colorado to set up these new businesses, with the expectation of failure.
Washington as well
Washington has stepped up the bar a bit further. They are already using well established credit unions through Numerica Credit Union. They don’t want to offer accounts to the recreational stores but will work with the processors and the growers.
On the other hand, they won’t let them have more than five million dollars in any account.
-They won’t let them have debit or credit cards for their accounts.
-They won’t let them deposit any check remotely.
-All deposits must be done in person and they won’t let them deposit in the night deposit.
-Of the 17 branches that Numerica has, the person with the new medical marijuana account, must live in the area in order to even have an account.
And last, but not least……. They won’t let them make deposits or withdraw their own money from other credit unions that are part of the same credit union network.
Indeed, it is being made….. but at what expense? The person trying to run their new business will have to move to the right county and make any deposits in person. They can’t access their own money but in person and not from other atm machines. Indeed, progress. But is it really?