Up until now, cannabis producers and sellers had to rely on cash transactions because they couldn’t use the federal banking system for their business activities. A credit union in Colorado is set to change this by allowing standard payment transactions for products from specific online stores and head shops, which sell items like Dab Rigs and Oil Rigs.
This week, two lawsuits were filed in Denver challenging recent decisions by the U.S. Federal Reserve and the National Credit Union Administration, which denied applications from Fourth Corner Credit Union. The credit union, established last year, aims to support Colorado’s marijuana industry and related businesses but needs approval from federal insurers and regulators to start operations.
Earlier this month, the Federal Reserve rejected Fourth Corner’s application, meaning many cannabis businesses still have to use complicated banking alternatives. These include paying utility bills with money orders and even masking cash with air fresheners to avoid detection.
For more details, visit CBS MONEY WATCH.