The US Patent & Trademark Office (USPTO) has published a patent filed by US financial services giant Bank of America that seeks to protect a system for wire transfers using cryptocurrency technology.
The patent, filed on 17th March, 2014, and published 17th September, seeks to protect a
system by which electronic funds could be sent between customer accounts using the underlying blockchain of a given cryptocurrency as the rails for payment – according to CoinDesk.
The system described, for example, would enable customer funds to be converted at a cryptocurrency exchange and then sent to a second cryptocurrency exchange to be converted into a foreign currency before the value is moved to a recipient.
Part of the filing, authored by Thomas Edward Durbin and James Gregory Ronca reads: “Enterprises handle a large number of foreign wire transfer requests on a daily basis. As technology advances, foreign transactions have become more common. For some customers, it may be desirable to conduct a foreign wire transfer in less time than what current foreign wire transfer systems allow.”
Durbin and Ronca suggest that such a system would be designed to “bypass” traditional wire transfer services, “reducing dependency on third-party networks” and “increasing the reliability of fund transfers”.
“Initiating fund transfers using cryptocurrency allows for the technical effect of conducting a foreign fund transfer in less time than a foreign fund transfer currently, as it avoids delays that may be caused by relying on third-party systems and services,” the filing continues.
Further, it suggests that fund transfers using cryptocurrency would reduce the need to transfer customer information to a “third-party system”, thereby “increasing control and security of customer data” during such transactions.