The legal market for marijuana in Uruguay

The Guardian has the story
How Uruguay made legal highs work
The South American country’s move to full legalisation of cannabis has so far proved a success, especially for its 17,391 users

"“On the street 25 grams of marijuana would cost you 3,000 pesos, that’s about $100 for something with probably a large amount of pesticide, seeds and stems,” says Luciano, a young buyer who is next in line. “But here the same amount would cost you only $30, and it comes in guaranteed, premium quality, thermosealed 5g packs.”

"In July this year, tiny Uruguay became the first country in the world to legalise the sale of marijuana across its entire territory.

"Only 12 of the country’s 1,100 pharmacies have signed up so far to supply the 17,391 government-registered consumers served by the system, which explains the long queues outside. The low price and slim profit margin partly explain their reticence. “But the main problem is that banks have threatened to close the accounts of pharmacies selling marijuana,” said one chemist who sells marijuana in Montevideo, but who did not want to reveal his name for fear of such bank intervention.

"Although sales of the drug have been legalised in various US states, they remain illegal at federal level, leading to a situation where most banks refuse to handle marijuana-related accounts anywhere in the world. Even now that sales in Uruguay have been completely legalised, the fear of running into trouble with the US federal authorities has become concrete.

...

"“The transformation of consumers has been astounding,” says Blasina. “They’ve gone from buying low-quality products from street dealers to becoming gourmet experts who compete with the crops at their clubs.”