Bank of America’s Patent for Cryptocurrency Exchange System Application Gets Accepted
Bank of America‘s patent application for its proposed cryptocurrency exchange system has been accepted by the US Patent and Trademark Office (USPTO). The system will enable automatic conversion of one cryptocurrency into another, and the exchange rates will be calculated based on external data feeds.
How The System is Going to Work
From what can be gathered by going through the patent documents, Bank of America’s cryptocurrency exchange will use a system comprising of three separate accounts. Of these three accounts, the first one will be used by the customers of a business that uses the system, and the remaining two accounts will be used by the business itself.
The users will use the customer account to store the cryptocurrency of their choice. The second account, which is referred to as a “float account,” will act as a holding area for the cryptocurrency that the customer is selling. The third account, which is also a float account, will have the equivalent amount of the cryptocurrency the customer should receive in exchange for the cryptocurrency they are selling.
Once the conversion between the cryptocurrencies takes place, the converted funds are then transferred from the third float account to the customer account.
- Once the customer initiates the transaction, the Bitcoin will be transferred to the second float account.
- The system will calculate the Litecoin the customer should receive in exchange for the bitcoin they have, and deposit the Litecoin in the third float account.
- The Litecoin in the third account will be transferred to the customer account, completing the transaction.
Should We Even Care?
Although traditional banks have shied away from taking the cryptocurrency plunge so far, the tide seems to be gradually turning. Bank of America is probably looking into cryptocurrency exchange services for its corporate clients. Even if they don’t make any concrete move in the near future, at least they are keeping their options open.
Another fact worth mentioning is that despite the dominant belief that traditional banks are completely unaware of the ground realities, and hence, will be sitting ducks in the coming cryptocurrency revolution, Bank of America filed a patent to create a cryptocurrency-powered wire transfer system way back in 2014.
Bank of America’s latest patent is definitely good news for the cryptocurrency world, as it shows that it’s only a matter of time until they join the party. Bank of America is the second largest bank in the US, and so, this is quite significant. We must remember that regardless of the negative statements by various bankers about cryptocurrencies, they don’t have anything against cryptocurrencies in reality. They are there to do business, and yes, to make money. If they think that there is money to be made by embracing cryptocurrencies, they will.
We are not so far from the point when the traditional financial institutions actively start participating in the cryptocurrency world, and won’t we just love to see that!