Bank of America’s filing for a patent for a bitcoin wire transfer system last year was published by the U.S. Patent and Trademark Office (USPTO) on September 17, 2015. The patent seeks to protect a cryptocurrency wire transfer system in which funds sent by a customer electronically could be transferred using the blockchain of the underlying cryptocurrency.
In particular, the bitcoin wire transfer system would convert the sender’s funds at a cryptocurrency exchange then sent to another cryptocurrency exchange to be converted to foreign fiat currency before the funds are received.
Bank of America Bitcoin Wire Transfer Service
According to the authors Thomas Edward Durbin and James Gregory Ronca, the system seeks to bypass traditional wire transfers, which can take days for larger amounts and incur large costs from third-party networks. Through this, the service can be able to reduce the dependence on third-party systems and enhance the control, security, and reliability of wire transfers.
Various transaction modules can choose between the cryptocurrencies on the exchanges based on a number of factors such as price, liquidity, and volatility. This system can be applied on a number of altcoins, such as bitcoin, litecoin, Ripple, and dogecoin.
“For example, transaction module 136 may choose a particular cryptocurrency