Marijuana is deed an illegal and dangerous substance by the U.S. Federal Government. This means, that nay entity that receives federal money or handles federal money can have nothing to do with it without a lot of consequences. This also means, that with marijuana being legalized around the country and medical marijuana being distributed is most states in the union that there is a problem with finance and anything to do with marijuana.
Marijuana has been legal in California since 2018, but they are unable to use banks as the average business would use them. They are prevented from using them because they are benefiting from a substance deemed illegal. The states themselves still want to benefit from the revenue marijuana generating though.
The State senate of California voted 35-1 on Tuesday, May 21, 2019 to pass a bill that would allow individuals to start their own banks and credit unions that could accept any money received from marijuana sales and transactions. Those banks could even write their own checks and the entire system would not be connected to the federal government.
The average person is now able to start their own bank in the State of California if they are involved in the ever growing marijuana industry. One of the reasons for allowing such entities to be created is to make it easier for marijuana dispensaries to pay their taxes. This change allows for credit and debit card transaction to be allowed for the first time in California. Regular banks are unable to process credit card and debit card payments from establishments that have anything to do with marijuana.
This change not only allows for more marijuana purchases by people wanting to use their debit cards, but it means the State of California will generate more taxes than their disappoint draw from last year.