Düber, a Seattle-based company, is innovating a whole new way to give more value to cannabis consumers through its alternative cryptocurrency, which it calls dübercoin (DBR).
While the cryptocurrency DBR is still in the pipeline, it will use a reward system for cannabis consumers by joining its network, Düber CEO Glenn Ballman told Forbes in an interview published on Monday.
This could be done “through consumer reviews or loyalty programs like buying on düber-enabled retailers on our network,” Ballman explained in his part two interview with Forbes.
Ballman said businesses like HomeAdvisor, Yelp or the value of Google Reviews are already based on consumer contribution, so “why shouldn’t they receive some of that benefit?”
He added: “This body of information that consumers contribute is incredibly valuable, even to standalone companies.”
Skirting the Cash Dilemma
As the U.S. federal government continues to lists marijuana as an illicit drug, cannabis businesses have issues when it comes to payment. Majority of them deal with cash. Some even carry duffel bags loaded with cash to pay their taxes.
But Düber is trying to come up with creative solutions to solve this problem by reducing “the amount of cash moving through the system.”
He said, “if the consumer doesn’t have cash on them, you need to provide an alternate method for that consumer to complete that purchase. Of course, Visa and MasterCard are not going to work.”
Ballman gave a quick overview of how could that work.
“The consumer can quickly buy the crypto and direct transfer from their bank account to the consumer’s digital wallet and then to the retailer’s digital wallet. Now you have a retailer with a wallet, and that money can be transferred from that wallet to the government to pay your taxes.
“Or to pay suppliers that may be across the state.”
As the trend for cryptocurrency continues with people minting their own currency “in a democratic fashion” to wean off dependency on governments, which print their own, Ballman expects a “potential for a powder keg here.”
In the first part, published in the same day, Ballman was asked what was his inspiration for DBR, he said: “Cannabis companies have a very difficult time getting bank accounts.”
“Getting a bank account from a federally chartered bank is impossible because federally, cannabis is still illegal,” he said, adding “getting a bank account at a local credit union is doable but the cost of managing this for the credit unions has gotten quite high, so many of them have discontinued their programs as well.”
So instead of politicians attempting to file bills to protect U.S. states, where marijuana is legal, or come up with laws to help cannabis businesses with their money transactions, DBR could possibly be a much easier and democratic alternative for both cannabis consumers and retailers.