Arizona to Test Marijuana-Oriented Stablecoin in State Fintech Sandbox

The state of Arizona has accepted a blockchain-based, cannabis industry-oriented payments solution into its fintech sandbox.

The Arizona-based financial services startup intends to offer a stablecoin that is pegged 1:1 with the United States dollar.

During its sandbox testing phase, Alta will trial its member onboarding and remittances platform.

Banking problems for the cannabis industryCannabis, while legal in some states in the U.S., is still considered a controlled and illegal substance by the federal government.

"The cash economy for legal cannabis in Arizona exceeds $350 million annually These are legitimate companies, innovators and entrepreneurs that are forced to operate in cash. We offer them peace of mind. Our digital payment technology lifts the burdens of having to operate solely through cash and makes our communities safer."

Other crypto business and state governments have tried to bridge the gap between the cannabis and financial services industries.

From the legislative side, lawmakers in the state of California proposed a bill in February that would accept crypto for tax payments from cannabis-related businesses.

Arizona Fintech SandboxArizona became the first state to introduce a regulatory sandbox in March 2018.

Republican Congressman Jeff Weninger reportedly sponsored the legislation behind the sandbox.

"It's exciting to have Alta as the newest participant in Arizona's FinTech Sandbox. There's huge potential for stablecoin technology in cash-intensive businesses around the world, and Arizona is fortunate to play a critical role in the development and growth of this emerging industry."