The expanding marijuana industry in Colorado may have hit a financial roadblock, reports The New York Times. Federal banking officials have rejected an application from The Fourth Corner Credit Union in Denver, which serves Colorado’s pot industry.
The Credit Union had hoped to create a “master account” with the Federal Reserve, which would have allowed it to do business with other financial institutions and serve businesses in Colorado’s state-licensed pot community.
While marijuana is legal in Colorado, the drug is still outlawed at the federal level. Marijuana businesses in the state have been repeatedly rejected for bank accounts, forcing them to operate in a dangerous and unreliable all-cash economy. Many of the businesses rely on banks and armored cars.
For more information, watch the Times's story, below: