Part of: Coffeeshops and banking
The tolerance policy as starting point
Dutch coffeeshop policy has been in place for more than 45 years. The front door — the sale of soft drugs in coffeeshops — is tolerated under strict conditions, set out in the Opium Act Directive and the AHOJGI criteria. The back door — buying from growers — has never been regulated. Producers cannot issue invoices or be paid via a bank account. This forces coffeeshop operators to pay in cash.
A declining but indispensable cash flow
Cash usage has been declining in Dutch society for years. According to DNB and Betaalvereniging Nederland the share of cash payments at the till has dropped from around 60% eight years ago to just over 20% in 2020. Cash withdrawals at bank counters have nearly disappeared and the number of ATMs is shrinking.
For coffeeshops this trend collides with their operations: without cash, purchases cannot take place. The combination of a shrinking cash infrastructure and the need to pay suppliers in cash creates the structural bottleneck this entire dossier revolves around.
Why this is more than an operational issue
The bottleneck affects not only operations but also public order and public health. When regular coffeeshops are forced to close because they cannot manage their cash flows, sales shift to the street, where there is no separation between soft and hard drugs and no age limits, quality control or tax compliance.