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West Virginia Treasurer Outlines Proposals to Offer Financial Services to MMJ Firms

West Virginia Treasurer John Perdue has sent a letter to Gov. Jim Justice outlining two plans to provide the state’s medical canna-businesses access to financial services. The first option is a “loop” system; the second a state-owned bank.

The “loop system” proposal would provide two options or a combination of both. A “closed-loop” which would allow payments within a network of individuals or entities that have accounts in the system, and an “open-loop” system that would provide payment services that would also be able to be used outside of the system. Both systems would be monitored by the state.

“This type of third-party payment service would provide a means for establishing accounts by the entities associated with medical cannabis; maintain strong security and fraud prevention practices and controls; provide robust reporting, including online access and integration with the Bureau of Public Health and State of West Virginia systems; and provide various other services, including armed car/courier services.” – Perdue in the letter to Justice

The state-owned bank would be run by the Treasurer’s Office. According to the Charleston Gazette-Mail report, the specifics of the bank would be determined by legislation. Diana Stout, general counsel for Perdue, said the bank could operate under a charter tailored for the medical cannabis industry.

West Virginia’s medical cannabis program is expected to launch next year.

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