Bank of America Looks to Patent a Cryptocurrency Storage System

Bank of America, who is the second largest banking institution currently in the United States, has filed a patent for a system that manages cryptocurrency storage in an enterprise environment.

Public documents (no, not leaked, you can read those @ https://wikileaks.org) published on Thursday by the U.S. Patent & Trademark Office show that the North Carolina-based firm has furthered its research into securing private keys in an institutional organization. The company first applied for this patent in April.

The patent, which first surfaced in 2014 as Bank of America was looking into Blockchain technology, specifically details how a computer would manage blockchain encryption tags, which loops back around to the continuation of a proposal for a cryptocurrency online vault storage system that Bank of America first began developing in 2014.

The patent envisions a future in which cryptocurrency is widely adopted by the general public but that consumers still entrust their funds to custodians such as banks rather than maintaining their own private keys. Which, at least in my opinion, still sort of ruins the own point of housing your own funds and controlling your own funds, in, say, a ledger wallet which is what a lot of people prefer.

Anyway, the authors wrote:

The authors wrote:

Enterprises may handle a large number of financial transactions on a daily basis. As technology advances, financial transactions involving cryptocurrency have become more common. For some enterprises, it may be desirable to securely store cryptocurrency.

Which, in a way, does make sense. An individual can use a ledger wallet or online wallet, but enterprises may resort to having financial institutions manage their funds for them.

Along with corporate giants such as Walmart and IBM, Bank of America has been among the United States’ most interested investors in blockchain research. The firm has applied for dozens of blockchain patents over the years, including quite a few that involve cryptocurrency in some capacity, others that just utilize blockchain technology.

In addition to its online vault storage system, the bank also applied for a patent for a cold storage system, as well as systems through which it could facilitate cryptocurrency payments and real-time conversion. Real-time conversion would likely be achieved by lightning blockchain technology. But cold storage? Now you’ve got the public’s interest!

Bank of America executives have criticized bitcoin on multiple occasions, saying at various times that it is a “troubling” payment system and that investors should not be optimistic about its potential as a speculative investment. Maybe a little hypocrisy up in the high ranks of BoA, considering they have also barred it’s customers from using their cards to purchase cryptocurrency.

Nevertheless, the bank admitted in its latest annual report that cryptocurrency adoption is a threat to its business model.

Photo by Jordan Andrews on Unsplash.


Comments
comments powered by Disqus