On 16th November, Canada passed a historical judgment. The country legalized the use of recreational marijuana, and became the largest legal market for weed in the world.
As stoners across the country rejoiced, the decision saw both support and backlash from various parts of the world.
However, the federal government released reports claiming that before weed was legalized, a lot of it was bought and sold on the dark web. Cryptocurrency transactions formed the bulk of these transactions.
You May Also Read: How To Make Bitcoin Transactions Anonymous?
So, Here’s What’s Really Happening In The Cannabis Cryptosphere. More and more cryptocurrency start ups are looking to enter the marijuana market, as they see a lot of profit in this particular sector.
However, is the dependency on cryptocurrency actually detrimental for the cannabis users? The Canadian government sure thinks so.
A “guidance document” has been published by the office of the Canadian Privacy Commissioner which directs marijuana users to carry out transactions in cash, instead of digital currencies. According to them, the use of cryptocurrency to buy marijuana might make the buyers’ sensitive information vulnerable to attack.
The privacy commissioner has expressed concerns that
“some countries may deny entry to individuals if they know they have purchased cannabis, even lawfully.”
This elaborate document titled “Protecting personal information: Cannabis transactions”, outlines certain instructions for marijuana users to not provide sellers with their details. The Commissioner has warned people to not provide any of their personal information to the sellers.
Consumers are also being encouraged to exclusively trade with retailers that host information in Canada and not store information in outside servers..
Now although cryptocurrency transactions guarantee anonymity, the transaction details are stored on a distributed public ledger, which can be accessed and checked by anyone. This is probably not a good idea for consumers who do not want to keep a trail of their transactions.
This is why, the government is explicitly encouraging the consumers to conduct transaction in cryptocurrency. Experts are predicting that this will increase the use of privacy coins in Canada.