Canada-based crypto company DMG Blockchain Solutions Inc. (DMG) has unveiled the plan to launch a blockchain-based supply chain management platform for cannabis industry.
Canada is the first country from Group of Seven nation to legalize recreational marijuana as of today. Cannabis was previously available only for medicinal use within the country. Currently, there are 120 licensed cannabis producers in the country, which have stated that supply chain issues could lead to scarcity soon after it becomes legal.
DMG is now in talks with marijuana industry players, distributors, quality assurance labs, and regulators about the supply chain launching in compliance with industry specific requirements. Among the planned capabilities of the new blockchain platform, DMG cites interoperation with legacy systems, on boarding of new participants, as well as defective product recall.
Blockchain technology has been actively used in food supply chains. Global food and retail companies, including Nestlé, Unilever, and Walmart, have been collaborating with IBM’s to explore how blockchain technology can to improve traceability in their supply chains. Last August, the testing of IBM blockchain track-and-trace solution, called IBM Food Trust, was began.