Canadian Blockchain firm to Build Supply Chain Platform for Cannabis Industry

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As per an announcement, Canada-based crypto and blockchain company DMG Blockchain Solutions Inc. has declared the development of a supply chain management platform for the legal Cannabis Industry.

As stated by Canadian national public news and information service CBC, the nation’s government officially legalized recreational marijuana. Earlier, cannabis was available for medicinal use within the country.

As per Health Canada, there are over 120 licensed cannabis producers in Canada, where one of the top producers has said that labor shortage and supply chain issue could lead to scarcity soon after it becomes legal.

Right now DMG is negotiating with marijuana industry players, distributors, quality assurance labs, and regulators about starting its cannabis supply chain solutions in compliance with industry-specific needs. Among the intended capabilities of the new blockchain platform, DMG refers interoperation with legacy systems, onboarding of new participants, and defective product recall.

CEO of DMG Mr. Dan Reitzik stated that “the emerging cannabis industry requires product management solutions, and blockchain technology is the most logical choice,” adding that “the initial use of blockchain was Bitcoin, but the perfect use is supply chain management for controlled products like cannabis.”

As per statistics are given by DMG, the cannabis market is $23 billion industry in Canada alone, while 13 million recreational customers produce $6 billion in revenue.

Blockchain tech has been actively deployed in agriculture and foods supply chain. Prior this month, IBM started its blockchain-based food tracking network, Food Trust to connect different parties in the food industry. Amid the trial period, Dole Food Co., Nestle SA, Golden State Foods, Driscoll’s Inc., Unilever NV, McCormick and Co., Kroger Co., Tyson Foods Inc., and McLane Co.