March 20, 2018 AntoniusP8

MonetaGo Attempts to Patent the Digital Gold Standard – Asset Exchanges Between Banks

A recent patent publication on March 15, 2018 reveals that MonetaGo Inc. has filed a patent application concerning a computer-implemented method for effectuating an asset exchange between banks.

The concept is clean and simple, and the patent application describes three basic process steps: i) processing the asset exchange between the banks, ii) settling the asset exchange via at least one central bank associated with one or more of the banks, and iii) updating one or more distributed ledgers to memorialize the asset exchange.

The published patent application mentions cross-border exchanges as a particularly interesting use case, as well as smart contracts.

However, how will the US Patent and Trademark Office respond to the patent filing?

The basic underlying idea of recording an asset exchange (transaction) on a distributed ledger is of course implied already by the Satoshi White Paper in 2008, and Hal Finney discussed the idea that most Bitcoin transactions will occur between banks, to settle net transfers, on the forum BitcoinTalk already in 2010.

Also, Bank of Canada released a paper called A Bitcoin Standard: Lessons from the Gold Standard concerning transferring Bitcoins between central banks and/or commercial banks, in March 2016, i.e. well before the filing date of MonetaGo’s patent application.

MonetaGo Inc is a New York based firm that develops tools for assisting financial institutions with intrabank and interbank payments.