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Bank of America Files Patent for Bitcoin Wire Transfer System

Avatar newsbtc 5 years ago

Bank of America’s filing for a patent for a bitcoin wire transfer system last year was published by the U.S. Patent and Trademark Office (USPTO) on September 17, 2015. The patent seeks to protect a cryptocurrency wire transfer system in which funds sent by a customer electronically could be transferred using the blockchain of the underlying cryptocurrency.

In particular, the bitcoin wire transfer system would convert the sender’s funds at a cryptocurrency exchange then sent to another cryptocurrency exchange to be converted to foreign fiat currency before the funds are received.

Bank of America Bitcoin Wire Transfer Service

According to the authors Thomas Edward Durbin and James Gregory Ronca, the system seeks to bypass traditional wire transfers, which can take days for larger amounts and incur large costs from third-party networks. Through this, the service can be able to reduce the dependence on third-party systems and enhance the control, security, and reliability of wire transfers.

Various transaction modules can choose between the cryptocurrencies on the exchanges based on a number of factors such as price, liquidity, and volatility. This system can be applied on a number of altcoins, such as bitcoin, litecoin, Ripple, and dogecoin.

“For example, transaction module 136 may choose a particular cryptocurrency exchange because the cryptocurrency is priced favorably (eg, cheap if purchasing, expensive if selling) or because the cryptocurrency exchange has a relationship with the enterprise,” the filing indicated. Some exchanges listed as examples include Bitstamp, OKCoin, Cryptsy, and CoinMarket.

To facilitate cost-effective transfers, the transaction module is geared at making nearly simultaneous initiations for buying and selling cryptocurrency. From there, a separate module would initiate the actual transfer of funds to the recipient. This way, the necessary security features would be integrated in that particular module.

For more information, view the full filing here.

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