In a landmark decision, the Canadian government yesterday legalized recreational marijuana. Cannabis was earlier available only for medicinal use within the country. Canada now becomes the second country in the world, after Uruguay, to legalize marijuana.
Going in lines with this new development, DMG Blockchain Solutions Inc., a diversified blockchain and cryptocurrency company announced that the development of a global supply chain management platform for the legal cannabis industry is now underway. The deployment would begin in Canada, and subsequently expand globally.
DMG, together with its technology and finance partners, is currently in talks with cannabis industry players, including major licensed producers, quality assurance labs, retail distributors, and government regulators, to develop a cannabis supply chain solution. This global blockchain initiative intends to be as per the specific requirements of the industry players.
Dan Reitzik, CEO, DMG Blockchain Solutions Inc., commented: “The emerging cannabis industry demands product management solutions and blockchain is the most logical choice. We want to be the first to offer an enterprise-grade solution in partnership with leading technology providers and cannabis producers, processors and distributors. The first use of blockchain was bitcoin, but the perfect use is supply chain management for controlled products such as cannabis. 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 the product, enhancing product safety, as well as facilitating and automating legal and tax compliance.”
According to market statistics, Cannabis represents a $23 billion industry in Canada alone, including an estimated $6 billion in revenue from 13 million recreational users. Also, various market reports indicate that the global cannabis market could exceed $500 billion.
DMG’s official announcement also highlighted some of the unique features of the proposed supply chain management solution:
- Supply chain automation on blockchain, applying artificial intelligence, IoT, machine learning and tight integration across the entire supply chain
- Development of interfaces between the blockchain platform and legacy systems, allowing for automated transactions and process flows, utilizing smart contracts
- Integration of existing ERP systems with the blockchain platform, supporting automated triggering of events such as defective product recall or the resupply process
- Integration with licensed producers, licensed distributors, retailers, shippers, as well as reporting and auditing system
- Onboarding of new participants
It seems that with the help of DMG’s blockchain platform, retailers and regulators will now be able to ensure that the product is safe and owing to the transparency of the blockchain industry it will be possible to track from which licensed producer the product has been supplied. Building a blockchain-based supply chain platform is, however, no easy task. It will be interesting to witness how DMG along with its technology partners will make this happen.