EXCHANGE OF CRYPTO
Because cryptocurrencies such as Bitcoin continue to rise rapidly, countries around the world are starting to take cryptocurrency more seriously. In the United States, Bank of America, the second largest bank in the country, has just won a patent for a crypto exchange system that they want to develop for business customers. The system would theoretically be able to easily convert one digital currency into another, while the exchange rate between these two currencies is determined on the basis of external data.
The patent states that:
Companies can process a large number of financial transactions on a daily basis. As technology progresses, financial transactions with cryptocurrency have become more common. For some companies it may be desirable to exchange currencies and cryptocurrencies.
The proposed system – currently only a patented system and not yet fully realized – has three facets: the customer’s account and the two companies that manage the system. Just like money in a traditional checkbook, the customer would store his cryptocurrency in an account. The second account contains the currency to be sold and the third account contains the currency to which the customer converts.
Making cryptocurrency so easily accessible and convertible could really change the nature of crypto transactions. While currencies such as Bitcoin are rising rapidly, some fear that the currency is valuable by nature. Moreover, it is not yet a generally accepted currency, so for the time being applications outside of online transactions and investments are somewhat limited.
Technology that simplifies the conversion of digital currencies not only makes them easier to use, but ideally they will also legitimize cryptocurrencies in general.
Of course, not everyone supports the adoption and incorporation of crypto by the big banks. In addition, there are places such as Catalonia that create interesting precedents for the use of cryptocurrency – the region is considering adopting crypto instead of a central bank. Whether or not you agree with the growing presence of crypto, the last step of Bank of America shows that it will not start soon.