IBM is promoting the use of blockchain technology in the legal distribution of cannabis.
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:
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."
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.