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Canada Marijuana Boom: Blockchain Company Sees Opportunity

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blockchain marijuana

The Canadian government just legalized recreational marijuana.

Wasting no time, the Vancouver-based company DMG Blockchain Solutions announced plans to provide a supply chain platform for the industry.

Full details are not yet available, but CEO Dan Reitzik offered this opinion regarding blockchain technology:

The perfect use is supply chain management for controlled products such as marijuana

They’ve explained that they are working with officials to ensure compliance with all the necessary standards. They’ve also said they’re working with a tech partner, but have not yet disclosed that information.

Their mission, however is clear, as Reitzik adds,  “We want to be the first to offer an enterprise grade solution in partnership with leading technology providers and cannabis producers, processors and distributors.”

Discussions have been underway with several of these groups already.

For all of them, scalability may be an issue.  On one hand, the new legality will be a boon for business.  On the other, it may also be a strain.

After all, Statistics Canada reports that citizens spent $4.6 billion on cannabis in 2017. They estimate that nearly five million Canadians purchased either medical or recreational pot as well.  This figure has climbed steadily over the last several years, and a study by the research group Deloitte suggests it will reach $7 billion in 2019

With over 120 licensed growers in the country, some are concerned that supply chain issues could get in the way

The main functions of the platform would be to incorporate the existing system, assist with on-boarding new members to the network, and track supply from farm to pharmacy. In other similar supply chains, blockchain has proven useful in tracking problem items. Walmart, for example, now requires blockchain-backed lettuce. If there’s an E. Coli outbreak, the harmful lettuce can be traced back to the source, and anything that passed through can be recalled efficiently.  DMG’s platform will also help ensure that the product comes from legal sources and has undergone taxation and other compliances.

 

 

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