IBM is promoting the use of blockchain technology in the legal distribution of cannabis.
According to a document issued to inform to the government of British Columbia, IBM is touting the use of blockchain in order to ensure consumer safety and to include regulatory oversight in the legal distribution of cannabis “from seed to sale.”
The feedback was issued as the Canadian province prepares a regulatory framework for a legalized cannabis industry. According to official statements, the province plans to make non-medical cannabis legal by July 2018.
Describing the technology’s key features, including its transparency and immutability, IBM noted that blockchain would assure the health and safety of consumers through “provenance and traceability” of products throughout the cannabis supply chain, thus eliminating fraud.
The document added:
“[Blockchain’s] relevance to regulating cannabis is similar to its many chain of custody applications in areas such as pharmaceutical distribution and food chains.”
On a concluding note, IBM stated that blockchain could help the provincial government “take control” of product sourcing and sales, thus helping eliminate black market sales “completely.”
Cannabis image via Shutterstock