TL;DR: US-based cannabidiol (CBD oil) coffee startup Crazy Calm launched recently, trying to set up accounts with online retailers such as Shopify, for example. Almost immediately, the new coffee brand received notice from the retail platform that, due to using CBD as one of its ingredients, Crazy Calm would be refused an account. For this and other reasons, the company embraced cryptocurrency.
CBD Coffee Startup Uses Crypto to Route-Around Banking Censorship
CBD has been around for roughly 80 years. It’s derived from cannabis plants, and preliminary research suggests it can be useful for anxiety and certain kinds of pain, among other claims. It does not, however, have the same sort of mild-altering effects of smoking marijuana or ingesting as what’s known as edibles. And while many states in the US have nullified federal law, which continues to define CBD as illegal, doing business with CBD-related companies is a very, very grey area. Some online retail platforms simply refuse service outright.
Enter Crazy Calm. Founded by Humans of Bitcoin podcast host Matt Aaron, the company planned to, of course, already incorporate cryptocurrency, including bitcoin cash (BCH) and ether (ETH) among others. “We wanted to use Shopify, but they shut us down for planning to sell CBD within a week of creating the account,” Aaron told CoinSpice, highlighting a primary use case for crypto, censorship resistance.
Crazy Calm’s website elaborates, “CBD is a high-risk product for banks and payment processors. Higher processing fees, difficult compliance. With cryptocurrency, there are no middlemen and we pay no processing fees. While regulation has been more favorable, we have zero guarantees that it will stay this way. This makes establishing alternative payment methods for our customers.”
Closing the Loop
To sweeten the deal, Crazy Calm offers a 10% discount if customers pay with cryptocurrency. And for the first 100 orders, “a $5 per-order donation will be made to feed people in need in Venezuela and South Sudan. This is made possible by the amazing charity EatBCH.” The charity takes donations in BCH “and sends them to local volunteers who turn donations into meals for those who need them in Venezuela and South Sudan,” the company stressed.
For Bitcoiners especially, the prospect of using crypto to purchase something as every day as coffee became an early rallying point. Enthusiasts were keen to spread adoption through merchants, showing the new technology’s frictionless revolution. Later, it would be used as a punchline and point of mockery as BTC maximalists transitioned away from peer-to-peer electronic cash and toward “digital gold.”
Aaron and Crazy Calm aren’t interested in polemics or rehashing ecosystem battles, but they’re aware of what crypto can mean for those looking beyond Lambos and mooning prices. “To spur cryptocurrency adoption, it helps for companies to get paid and for stores to pay us with cryptocurrency. So far, 3 potential wholesale clients (CBD and Vape Shops) have inquired about paying with crypto to receive a 10% discount. We have also spoken with our coffee supplier about using cryptocurrency for payments. We hope to educate business owners in the cannabis space and other high-risk banking sectors about advantages and challenges to use cryptocurrency as an additional payment method for their business,” Crazy Calm insisted.
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DYOR: CoinSpice is your home for just spicy crypto things. We’re not affiliated with any cryptocurrency project or token. Each published piece is intended for information purposes only, not investment advice and not in the hope of impacting speculative markets. There are plenty of trading sites and coin-specific advocacy journals out there, we’re neither. CoinSpice strives for rigorous accuracy in our reporting. Information presented here is contingent usually on a host of factors, and the ecosystem moves fast — prices change, projects change, and at warp speed. Do your own research.
DISCLOSURE: The author holds cryptocurrency as part of his financial portfolio, including BCH.