New PotCoins and DopeCoins Are Just for Buying Drugs
While cryptocurrency Bitcoin isn't a stranger to being used to buy drugs, PotCoin and DopeCoin have a different, more drug market-friendly approach.
Step aside, Bitcoin, there are new cryptocurrencies in town and they aren't tiptoeing around the fact they're for buying marijuana and other drugs. PotCoin and DopeCoin are looking to be the dedicated transaction service for the drug marketplace, which can't seem to get service from traditional banks.
PotCoin wants to become an integral part of state-legal marijuana markets, both medical and recreational, which is an industry traditional banks are hesitant to support because of its legal gray area. Its developer "mrjones" expects his digital currency will be legally accepted by marijuana growers and dispensaries worldwide, from Colorado to Vancouver to Amsterdam.
DopeCoin seeks to do the same as PotCoin to the wider drug market, both legal and otherwise. The currency's developer "Dopey" has said that his currency can be used anywhere from online black markets like SilkRoad to legitimate retailers like Overstock.
"We're the bad boys of cryptocurrency," Dopey said. "I would never advocate illegal drug use or any illegal activity to do with this currency. 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."
Because drug enterprises, legal or illegal, have a hard time getting banks to hold on to their cash, they have to keep wads of easily heisted cash around. Several heists have occurred at Colorado dispensaries since legalization. Though Attorney General Eric Holder has issued new regulations, banks remain hesitant to do business with legal dispensaries.
"Digital currency solves that problem immediately," Dopey said. "It takes away the cash storage issue, it takes away the issue of banks as the only secure way to handle your currency. This is about giving 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."
But PotCoin wouldn't be so hands-off.
"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," mrjones said. "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."
Watch PotCoin's promotional video below: