Bank of America files patent for cryptocurrency-mediated wire transfers

The BoA filing describes an alternative to traditional wire transfers. The funds are first transferred to a cryptocurrency exchange, then converted to a cryptocurrency such as Bitcoin, then sent to another exchange, and finally converted into another currency for the recipient. In other words, BoA wants to patent the concept of using a cryptocurrency as a transparent intermediate step for fiat currency transfers.

BoA claims that the system described in the patent application can reduce or eliminate disadvantages and problems associated with traditional wire transfers. The application notes that enterprises handle a large number of foreign wire transfer requests on a daily basis, and foreign transactions are becoming more common.

The proposed BoA system can bypass traditional wire services, reduce the dependency on third party networks, and increase the reliability of fund transfers. Cryptocurrency-mediated transfers permit completing a foreign fund transfer in less time than traditional wire transfers, avoiding delays that may be caused by third party systems and services. Furthermore, transferring funds using a cryptocurrency reduces the need to transfer customer data to third-party systems, thus increasing control and security of customer data.