Medical Marijuana Dispensary Becomes Canada's First to Accept Bitcoin

Sep 17, 2014 at 20:35 UTC. Mega Chill has become the first medical marijuana dispensary in Canada to accept bitcoin.

The relationship between bitcoin and the marijuana industry is long-standing due to bitcoin's ability to offer an alternative to the traditional banking system and its still-prevalent use in online dark markets.

In the case of Mega Chill the decision had less to do with sidestepping potential money problems and more to do with the growing popularity of bitcoin as a payment method.

CoinDesk spoke with co-owner Matt Jung, who cited the public's curiosity and enthusiasm for digital currency as the reason his business decided to accept bitcoin.

Notably, the company manages its own bitcoin wallet rather than using a payments processor.

For some, Mega Chill represents the ideal merchant for bitcoin - a business that is a relative newcomer to the technology but still sees the benefits of accepting it.

Some observers have pointed to bitcoin as potential boon for businesses in the marijuana space.

In some ways, the regulatory environment for bitcoin mirrors the situation currently facing the marijuana industry.

Still, US-based bitcoin merchant processors have been reluctant to support the marijuana industry.

Beyond the dispensary, the co-owners of Mega Chill plan on accepting bitcoin at the pizzeria next door, Mega ILL Pizzeria, once it reopens for business later this year.