Bank of America getting into crypto

[OliverChassa]

Bank of America just won a patent to develop a crypto exchange system. Here is a short extract about what the patent states: 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 exchange currencies and cryptocurrencies.

The proposed system — which is, at present, only a patent and not yet a fully realized system — has three facets: the customer’s account, and the two businesses running the system. Like money in a traditional checking account, the customer would store their cryptocurrency in an account. The second account would hold currency to be sold, and the third would contain the currency the customer is converting to.

It's definitely not a surprise that more of the major financial actors want to get somehow involved in cryptocurrencies. I would expect both pure crypto companies and financial actors working more closely together in the near future, not exclusing M & A either since the market needs both type of companies.

Here is the link to the article I was refering to: https://futurism.com/bank-america-wins-patent-crypto-exchange-system/

[avikz]

That's a really big news which you have just shared. BA is even bigger than the CME group and if they enter the crypto market, we will see a huge positive impact on the market. Since only the patent is received, the main system will take some time to become a reality, but you can expect a few billions of dollars more pouring in to the system. What I understood from the article that BA is planning to provide a checking account service for the crypto currency as well as an exchange platform. It will certainly increase the liquidity and credibility of the crypto market and provide more visibility to masses. The last quarter of 2017 was crazy for crypto market and I believe, we are going to experience the same in 2018 as well.

[secondgarlic]

It's just a matter of time now until banks figure out how much potential cryptocurrencies have. What we need now is for governments to take a step forward as well and start looking at how bitcoin should be legalized for good. Because if big banks are in the game as well, the governments will have to address this as soon as possible.

[nuritdinov]

Bitcoin made a real success in the financial industry - in 2013 its price exceeded $ 1000, and despite a subsequent significant decline, in 2017 returned to the same mark. This week bitkoin updated new records and passed a mark of $ 1510. Bitcoin began to appear and other currencies - their number has already exceeded 200 and is constantly growing, but 85% of the world's total crypto currency is still bitcoin.

[nuritdinov]

Crypto currency has a number of useful properties, which can be considered using the most popular of them, bitcoin. Here are the key positive differences bitcoin from the usual money that you see in your Internet bank.

[earnmoneyonl]

Good news for us. The bitcoin will become more popular and the price will be increased soon. Just hold it then we will be rich. 

[Jet Cash]

The question is - will they use it, or just try to block new services and charge them royalties to operate such a system.

[squatter]

It's just a matter of time now until banks figure out how much potential cryptocurrencies have.

I'm pretty sure they already have. The commercial banks have been filing blockchain patents for years now, building prototypes. And just as we see Bank of America signalling a move into the cryptocurrency exchange market, Goldman Sachs announced that they will be clearing BTC futures contracts for their clients.

A report from JP Morgan Chase released a few days ago says that Bitcoin could become a new gold-like asset, suggesting that it could become entrenched in the world markets like gold, oil and other trusted commodities.

What we need now is for governments to take a step forward as well and start looking at how bitcoin should be legalized for good. Because if big banks are in the game as well, the governments will have to address this as soon as possible.

I think we'll see governments scrambling in every direction. This is a completely new animal to them. Morocco banned the use of cryptocurrencies; so did Vietnam. Meanwhile, regulated futures markets are opening in the United States. That seems more telling to me than anything else.

[A1exander]

Interesting news. Big players continue to show interest in cryptocurrencies. Looks like there will be more money pouring into it, that's good.

[tanghere1]

If they launch that new system, can it actually pull the bitcoin price down? And how?

[Rahar02]

It's surprising, I have no idea how they win it, but since Bank of America wins the patent and get in to exchange system to convert cryptocurrency and fiat currency, will affect bitcoin significantly, bitcoin price will skyrocket in the US obviously, more than in Japan or South Korea. Nevertheless, there is a concern about your transactions and capital gains will be completely recorded if you're dealing with BoA. People can easily trade cryptocurrency as long as they pay the taxes.

[CoinOnTheBeach]

That is a very good news for all crypto enthusiasts like us.
the more banks get on board the better.

[Headachez]

I took a look at the actual patent. It is extremely detailed. They outline over 1300 steps, you can view it here: http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.htm&r=1&p=1&f=G&l=50&d=PTXT&S1=9,836,790.PN.&OS=pn/9,836,790&RS=PN/9,836,790

And here is a snippet of what a step looks like:

In step 1006, validation engine 234 determines the amount of cryptocurrency involved in the cryptocurrency transaction. Although different types of cryptocurrencies use different units of cryptocurrency, validation engine 234 may determine the amount of cryptocurrency in the appropriate unit. In addition, validation engine 234 may determine fractions of the unit of cryptocurrency. For example, cryptocurrency risk detection engine 232 is able to determine that the cryptocurrency transaction includes 1000 Bitcoins, 0.001 Litecoins, 1 million Namecoins, 7.5 Dogecoins, 23 Peercoins, or 1 Mastercoin. In certain embodiments, a cryptocurrency transaction may include a plurality of types of cryptocurrency and validation engine 234 determines the amount of each individual cryptocurrency. For example, validation engine 234 may determine that a cryptocurrency transaction involves 1 Bitcoin, 2 Dogecoins, and 0.001 Mastercoins. Validation engine 234 may also determine exchange rates between the types of cryptocurrencies, such that it can determine an objective amount of total cryptocurrency involved in the transaction. For example, validation engine 234 may determine a cryptocurrency transaction involving 1 Bitcoin, 2 Dogecoins, and 0.001 Master coins is equivalent to 5 Litecoins.

[maxxdxx]

This is pretty dumb. This patent only applies to the US. Which means that if they are planning to use it aggressively to stop crypto exchanges, they will just drive them to another country. Which will mean less money for the US.

[Reid]

The question is - will they use it, or just try to block new services and charge them royalties to operate such a system.

Thats a good question.
I would love to know about that too considering there is not much usage for bitcoin.
Or are they just going to be a path so that the government will see those who are not transparent with all their funds.
This will just end with the issue of taxes again or those who are escaping the tax will be charged without them seeing it.
It could be good or it will be really bad.

[bonesparka]

Since Bitcoin is very popular, sooner or later, the local banks will see the benefits they can get with Bitcoin and will start investing on them as well to gain the profit from them as well.

[Altero]

One of the biggest and strongest country wants to accept crypto, it's really great. I think they have plan for crypto, hope it will help to improve the system not by controlling it as what they do to other country. Since they are one of the powerful country, I knew they can do it and they can easily eliminate crypto in the their country.

[mybtcasset]

mostly all top banks are going to start bitcoins due to Japanese interest in bitcoin

[GeePeeU]

Be weary of BOA's motives.

They have been convicted of malicious and fraudulent practices in the not-so-distant past.

[RomertL]

It is very important for banks to start to work with bitcoin as soon as possible.