Will PotCoin Revolutionize the Drug Marketplace?
Two new cryptocurrencies could radically change the way people purchase drugs online.
PotCoin, which is aimed at legal medicinal and recreational marijuana markets, and DopeCoin, aimed at both legal and illegal drug markets, are the first digital currencies solely dedicated to the drug marketplace. They will provide payment alternatives to an industry that is almost entirely cash-only, while still keeping the transactions off the books.
Unlike the bitcoins that made headlines last year, these two digital currencies have an interest in the legal market. The developers of PotCoin even believe they can be accepted as legitimate in the marijuana industry. A handful of still-unidentified retailers have committed to using PotCoin, while DopeCoin is currently accepted by two brick-and-mortar businesses in Europe and two online merchants in the US. But of course, the developers of these cryptocurrencies expect they will expand much further than that.
“Because [marijuana] is still illegal by federal law, banks have shunned these businesses and left them unable to apply for credits card or open up checking accounts, forcing them into cash-only transactions.”
PotCoin is particularly promising for the legal marijuana industry. Because the drug is still illegal by federal law, banks have shunned these businesses and left them unable to apply for credits card or open up checking accounts, forcing them into cash-only transactions. Because of the potential for people to abuse their currency and purchase illegal drugs, PotCoin developers “Mrjones” and “smokemon” (they intend to reveal their real names when they formally announce the new currency at a cryptocurrency convention next month in NYC) are striving for transparency and promise to stamp out any illegal activity.
“We’re building a network database for merchants to allow them to optionally link users with accounts. This can facilitate insurance claims and down the road, doctors’ prescriptions,” said Mrjones. “Bottom line, if you are a bad person doing bad things, PotCoin is no place to play, and obviously if a crime has been committed, our cooperation will be swift.”
That’s a promise that DopeCoin has not committed to make since their currency can be used to buy illegal drugs on online marketplaces like Silk Road. “I would never advocate illegal drug use or any illegal activity to do with this currency,” said DopeCoin developer ‘Dopey’ “This is a digital currency created by the people, for the people, and what people do with it has the same consequences and responsibilities that they would have for the American dollar.”
Despite the risk of being caught that always comes with purchasing illegal substances, DopeCoin is promising a safe currency with a high level of security. The makers of both cryptocurrencies have extensive experience building high-profile startups, third-party billing systems and mobile apps. Dopey explained that the whole point of DopeCoin is to give “people a currency choice that protects them from anyone who shouldn’t be looking into what they are spending money on in their private lives.”