Law enforcement can't stop cannabis transactions where it's legal. The problem lies in the federal government where all sales of marijuana are still deemed illegal. Crypto helps to solve that problem by trading cannabis for a token. If the token is worth what you're trading for, you can sell that token and the sale of the token is not illegal under the eyes of the federal government.
First thing that comes to mind that could throw government wrenches into the mix are state/local sales/property taxes and federal income taxes/employment taxes.
Can't pay any of the above directly with CANNs, so they'll have to be exhanged to USD$s. But, IRS/State/etc are going to want to know where those deposits of USD$s suddenly come from.
How do businesses and small towns handle reporting income/wages/etc when using specialized local/community currencies?
/not an expert of state/fed taxes, income/wage reporting, nor alternative currencies in the analog world
lol "IRS/State/etc are going to want to know where those deposits of USD$s suddenly come from"
Did you know 99.9% of dispensaries are CASH? Dispensaries have problems with large sums of cash already and LARGE SUMS of cash is what banks see from dispensaries.
Merchants are not 100% crypto. Please go ask your local tax representative regarding your questions.