The BOA patent application and what it reveals

BOA patent

The Bank of America patent application makes not one single mention of the blockchain.

BOA are just getting their oar in first, staking a claim to be able to optionally use their current system to route wire transfers via existing cryptocurrency networks when reliability/time/control factors are an economic factor.


FIG. 1 illustrates an example cryptocurrency wire transfer environment 100 according to certain embodiments. In general, wire transfers are used by enterprises, such as financial institutions, to transfer funds from one customer account to another customer account. Some wire transfers may move funds from a customer account in one country to a customer account in another country. In response, the enterprise may decide to use a cryptocurrency to transfer the funds. A cryptocurrency is typically a peer-to-peer, decentralized, digital currency whose implementation relies on the principles of cryptography to validate transactions and generate the currency itself. Some examples of cryptocurrencies are: Bitcoin, Litecoin, Ripple, Peercoin, and Dogecoin. In some instances, a cryptocurrency, such as MintChip, may be backed by a government (e.g., Canada). To transfer funds using cryptocurrency, an enterprise may receive payment from a customer and purchase a quantity of a chosen cryptocurrency, at a local cryptocurrency exchange, in an amount equivalent to the received payment. Essentially simultaneously or shortly thereafter, the enterprise may sell the quantity of the chosen cryptocurrency at a foreign cryptocurrency exchange, resulting in a foreign currency that is used by the country in which the recipient account is located. The enterprise may also transfer the quantity of the chosen cryptocurrency from the local cryptocurrency exchange to the foreign cryptocurrency exchange.

It’s just another app that makes calls on the API of a (dynamically-selected) cryptocurrency in order to effect wire transfers of fiat. In the BOA model, the cryptocurrency simply acts as a carrier for any run-of-the-mill wire transfer, BOA’s system instructs the exchanges on the fiat-to-crypto-and-back conversions, effects the transfer and makes the final delivery of fiat to the recipient.

The really valuable take-home from this is a US retail bank’s sober assessment of the advantages of using cryptocurrency, a useful arrow for the quiver of anyone making a cryptocurrency business pitch.

And, peering ahead, a pointer to one possible future as envisaged by BOA bankers in which Bitcoin is but one cryptocurrency amongst many (or at least, several)

And in which cryptocurrency exchanges are hosted in jurisdictions all over the globe.

wherein the first cryptocurrency exchange is located in a first country and the second cryptocurrency exchange is located in a second

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