There is a strong opportunity for the right blockchain-cryptocurrency solution to solve this problem.
How? If the banks start opening up to the cannabis and medical marijuana industry then users can buy them legally with fiat and credit cards. Thats where BTC and other cryptocurrencies lose their notoriety as the preferred medium to use for buying and selling illegal drugs.
Regulations and restrictions give more value to BTC than we know.
Great question. The answer is that legit businesses are disadvantaged, and there is a need for a dedicated solution for them. Here's why. In the US, the federal government says that if a state passes a law to decriminalize cannabis, it can do so, under the condition that rigorous rules and regulations are in place. Many states have already legalized recreational and medicinal marijuana, however, many cannabis businesses are unable to open bank accounts, or keep funds in a bank account because banks are not willing, due to US federal banking regulation restrictions. They're denied these services due to the banks uncertainty about providing them under federal or state laws. Even in the Blockchain sphere, many bitcoin exchanges do not want to serve or work with cannabis related businesses, for similar reasons. And that's a giant damper on doing business - even totally legitimate and legal business.