It turns out that the US patent and Trademark Office has awarded a patent to Bank of America in relation to cryptocurrency. BOA is one of the largest banks in the United States, second in fat and is now being awarded a patent to the proposed digital currency exchange system. The system will be put in place that will allow the bank to convert digital currency into another instantly and automatically, with the exchange rate being dependent on virtual data feeds that are external.
Under the patent application, that is currently being developed will allow data to be gathered from outside resources focused on the current value of different digital currency rates and then utilize the collected data to calculate its own optimal rate.
One part of the patent reads as follow:
“Enterprises may handle a large number of financial transactions on a daily basis. As technology advances, financial transactions involving cryptocurrency have become more common. For some enterprises, it may be desirable to exchange currencies and cryptocurrencies.”
Details on the Proposed Exchange System
After going through other articles, it appears that being based on the patent documents, the platform will made up of three separate accounts. The fist will be used by customers of a business using the platform, and the next two accounts will be used by the businesses themselves.
As for the exact purpose of the second account, which will be called a float account, it will serve as a holding are for the virtual currency that is being sold by different customers. The third account is also a type of float account and will be used to hold the same amount of digital currency that is being sold by the customer. Once the transaction is completed, the third account will then be used to deposit the converted funds back to the original customer’s account and it will be ready for withdrawal.
The system is patented and has the capability to automatically assess transactions to discover illegal trades. It will use different data, like the amount of the transaction being converted in order to calculate the risk score on a specific transaction. The system will cancel any transfers automatically if it declares them as being legal risks.
This moves Bank of America far ahead of the other monetary institutions in terms of the patent it has. The bank now has filed nine different patent applications since August in relations to cryptocurrency.