DMG Blockchain Solutions Inc has announced that it is developing a global chain supply management platform for cannabis.
According to the Canada-based blockchain company’s announcement, this platform will be a “first mover” as a global cannabis blockchain solution.
Regarding the new platform, DMG’s CEO Dan Reitzik stated:
“The emerging cannabis industry demands product management solutions and blockchain is the most logical choice… Canada is being positioned to be the global supplier of cannabis, and our blockchain platform can help enable this by way of product traceability for rapid recalls, ensuring a legal source of product, enhancing product safety, as well as facilitating and automating legal and taxation compliance.”
The announcement came at the same time that the country’s national news service CBC posted that the use of cannabis for recreation is now legal, as before it was only accepted for medical purposes.
At the moment, DMG is in discussions with cannabis industry players, such as quality assurance labs, retail distributors, and regulators. The company hopes to get the significant and key players “on board” as the development and launch of the blockchain platform takes place.
In its announcement, DMG pointed to the figures of Cannabis use. According to the firm, the now-legal plant represents a $23 billion USD dollar industry in Canada, which sees an estimated $6 billion USD come in as revenue from 13 million recreational users. The firm offered that markets show that the global cannabis market could exceed $500 billion USD.
Earlier this year, Alibaba piloted a blockchain supply-chain platform to help fight food fraud. At the time Alvin Liu, the Alibaba Group general manager of T-Mall Import & Export, had said that the activity of food fraud “is a significant global challenge, particularly with the growing complexity of supply chains“.
It seems as though blockchain is an attractive next step for supply chains, no matter whether the supply is food or cannabis.