Bank of America files patent for cryptocurrency wire transfer system

On September 17, 2015, the U.S. Patent and Trademark Office (USPTO) published a patent application from financial services giant Bank of America that seeks to protect a wire transfer system that uses cryptocurrency technology.

It is reported that Bank of America submitted the application for the patent on March 17, 2014.

Description of the wire transfer system: For example, it allows a user's funds to be converted on one cryptocurrency exchange and then sent to a second cryptocurrency exchange to be converted into a foreign currency.

Discussing the purpose of the invention, authors Thomas Edward Durbin and James Gregory Ronca wrote:

"Businesses process a large number of outbound wire transfer requests every day. As technology improves, transactions from foreign countries are becoming more common. For some customers, it may bring an improvement in the speed of processing outbound wire transfers."

Durbin and Longa suggest that such a system would be designed as a "branch" to traditional wire transfer services, reducing reliance on third-party networks and increasing the reliability of fund transfers.

“Using cryptocurrency as a method of transferring money allows foreign funds to be transferred in a shorter time because it avoids delays caused by third-party services,” the application states.

It is reported that although the term used in the application is "cryptocurrency", the specific examples actually refer to Bitcoin, Litecoin, Ripple and Dogecoin.

Representatives from Bank of America did not immediately respond to a request for comment.

Assessment needs

One of the very interesting things about the application is that it envisions cryptocurrency as a preferred way to transmit funds.

For example, Bank of America said its trading module may use multiple available cryptocurrencies and cryptocurrency exchanges, taking into account various factors such as price and market volatility.

Among them, OKCoin, Bitstamp, BTCC (Bitcoin China), Cryptsy, CoinMarket and Justcoin were listed as examples of cryptocurrency exchanges.

The filing goes on to note that the module will seek to initiate both buying and selling of cryptocurrencies to facilitate economic transmission transactions.

A separate module will then initiate the transfer of funds and will be responsible for handling the security aspects of the transaction.

For more information, visit the original application filing.

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