The Federal Reserve Denies Colorado Credit Unions to Marijuana Businesses
Colorado has been having one hell of a hard time determining just how to keep their Cannabis money safe and secure from the new found 700 million dollar a year industry. For the last several years any Cannabis business in the State of Colorado has had to do it without the assistance of the US Banking Institutions. No Checking accounts, no Savings accounts and no FDIC Insurance.
The Fourth Corner Credit Union was established to be THE organizational that would come to rescue of legal cannabis producers around the state and allow them to invest their earnings in an FDIC insured account just like any other US Business or Citizen.
The Forth Corner Credit Union Website
Founder Mark Mason and a group of entrepreneurs in Colorado wanted to start the first “Marijuana Bank” in history and one that works within just that ecosystem. The mission statement is to provide a “compliant” set of banking services to those in the cannabis industry.
Founder Mark Mason and friends wanted to setup the first "marijuana bank" in history that would meet all the stringent requirements the Federal Reserve has setup to do banking in the US. Despite the noble goals the Federal Reserve said in a court filing that says the Credit Union's “very existence is prohibited by federal law.” The filing claims they won’t arrest bankers who take cannabis funds into their establishment but putting that money into the Federal Reserve system is a different story. The Fed in its court statement said these money deals were much like “trading endangered species or trading with North Korea” which gives the belief that the Reserve detests the pot cash.
So to summarize. Our State government feels we have the right to make Cannabis legal. We are blessed with taxation and licensing fees charged by the State. We cannot however even think of using the US Banking System or have our funds insured by the FDIC like every other form of business being conducted in this great land. So what is a Cannabis business to do?
That is a fair question and one that obviously has been posed before. The answer however still alludes us and with no answer in site it adds risks and burdens that a local business does not deserve to have put upon it. This is assuming of course that you do not see the world the way I do. If the State and Federal Government cannot figure this out I truly believe it is up to us to not depend or use their system of Banking. Why should they have their cake and get to eat it to?
That takes me to the block-chain and Bitcoins. The Federal Government has already determined that Bitcoins are a commodity. So there is a taxable means in which to use Bitcoins. In my review of the temporary laws as passed by Oregon State I see no mention that they could or couldn't be used as a means in which to collect payment for said cannabis sales. So I will try.
Maybe this new Bank can assist in accomplish what I and every other cannabis producer is looking to solve. It's a bank that is looking to start up and is unlike any bank that has come to be in the past. It will allow us to make USD deposits as well as Bitcoin if we see fit to accept that currency. I will most likely be giving this bank a try when it is officially online around mid 2016. Until then take a look and see what you think of it.
And a good article that describes it.
Enjoy!