Arizona, home of the first U.S. FinTech Sandbox, has admitted another cryptocurrency startup into the program that is designed to ease regulatory burdens for entrepreneurs in the financial technology space. According to a statement released by Attorney General of Arizona, Mark Brnovich, ALTA becomes the seventh firm to be inducted into the regulatory sandbox. On its website, ALTA describes itself as a “digital payment club where cash-intensive businesses pay each other using digital tokens instead of cash.”
The crypto startup mainly provides its cash management solution to medical cannabis vendors. Basically, members buy ALTA tokens on the startup’s exchange, enabling them to make payments to other members by transferring the tokens. The tokens are redeemable for U.S. dollars at a rate of 1:1.
With U.S. banks and other financial institutions averse to offering their services to cannabis-based businesses due to the varying laws and regulations that exist across state lines, it is not mandatory to possess a bank account in order to buy ALTA tokens.