A new measure added to the November ballot in California will ask residents to vote on whether they would support a publicly owned bank in Los Angeles. The Los Angeles City Counsel voted unanimously, on June 29, in favor of adding the measure to the 2018 ballot.
City Counsel President Herb Wesson first spoke on the idea of a new public bank last year in July. With the idea of helping to legitimize the $3.7 billion dollar cash dominate market for recreational cannabis, Mr. Wesson’s idea looks to revolutionize how business is done in California.
One of the main issue facing the cannabis industry today is that federally run banking institutions refuse to take cannabis businesses money because of its labeled status as a schedule 1 drug. The proposed public bank in California would not only solve this issue but, also open the door for the possibility of publicly owned banks in other recreational states.
The implementation of a public bank for the city of Los Angeles would give businesses and individuals complete autonomy. This would allow the newly formed bank to issue loans, accept deposits, and help infuse newly obtain capital pouring in from the cannabinoid industry into the states economy. The introduction of a closed loop banking system for Californians would be monumental for the cannabis industry and virtually every other business in the state.