Method and system for commodity-based currency for payment of accounts

• US 7,206,763 B2
• Filed: 05/16/2003
• Issued: 04/17/2007
• Est. Priority Date: 02/10/1993
• Status: Expired due to Fees

• Current Assignee: Goldmoney Network Ltd.
• Original Assignee: GM Network Limited
• Inventors: Turk, James J.
• Primary Examiner(s): Colbert; Ella
• Assistant Examiner(s): Dass; Harish T.
• Application Number:
  US10/439,717
• Publication Number:
  US 20030191708A1
• Time in Patent Office: 1,432 Days
• Field of Search: 705/37, 705/28, 705/39, 235/383
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/203 Inventory monitoring
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/29 characterised by micropayments
• CPC Class Codes: G06Q 20/3676 Balancing accounts
• CPC Class Codes: G06Q 20/3678 e-cash details, e.g. blinded, divisible or detecting double spending
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0607 Regulated
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A system and method for permitting gold or other commodities to circulate as currency requires a network of system users that participate in financial transactions where payment is made in units of gold. The gold is kept in secure storage at a deposit site for the benefit of the users. The payments in gold are effected through a computer system having data storage and transaction processing programs that credit or debit the units of account of gold held for the account of each system user.

Claims

1. An electronic commodity based system for conducting financial transactions, comprising:

at least one deposit site having secure facilities for storage of a valuable commodity;

an inventory of a valuable commodity stored in said secure facilities at a said deposit site, said inventory including a quantity of units of said valuable commodity held at said deposit site for at least one identified account;

a computer system for processing data for accounting transactions denominated in said units of said valuable commodity, said computer system having at least one data storage device and data processing software that records a balance of units of valuable commodity credited to each said account;

said software being operable to receive records of transactions transferring an interest in units of said valuable commodity from one account to another identified account;

said records of transactions including at least an identification of a first account that will receive a debit, and a second account that will receive a credit, an amount of the interest in said units of said valuable commodity which is being credited to said second account, said records of transactions thereby up-dating data regarding the balance of units of valuable commodity credited to each said account;

said electronic commodity based system permitting persons to conduct financial transactions without reliance on national currencies in conducting said financial transactions, whereby obligations, of a person receiving a said debit of said units of said valuable commodity of the person'"'"'s account, to an other person receiving a said credit of said units of said valuable commodity to the other person'"'"'s account, are extinguished upon posting of said records of transactions, thereby eliminating payment risk.

2. A system in accordance with claim 1 wherein said valuable commodity comprises a precious metal.

3. A system in accordance with claim 2 wherein said precious metal comprise gold.

4. A system in accordance with claim 2 wherein said precious metal comprise silver.

5. A system in accordance with claim 3 wherein said gold is specified to a selected purity.

6. A system in accordance with claim 2 further comprising means for remote access to submit records of transactions to instantly debit and credit a person'"'"'s accounts.

7. A system in accordance with claim 6 further comprising verification means for verifying the identity of said person obtaining access to said computer system and for confirming that said person is authorized to submit records of transactions to said transaction storage device.

8. An electronic gold based system for conducting financial transactions, comprising:

at least one deposit site having a protected vault;

an inventory of gold stored in said protected vault at a said deposit site, said inventory including a quantity of units of gold held at said deposit site for an account of at least one identified account;

a computer system for processing data for accounting transactions denominated in said units of gold, said computer system having at least one data storage device and data processing software that records a balance of units of gold credited to each said account;

said software being operable to receive records of transactions transferring an interest in units of gold from one account to another identified account;

said records of transactions including at least an identification of a first account that will receive a debit, and a second account that will receive a credit, an amount of the interest in said units of gold which is being credited to said second account, said records of transactions thereby updating data regarding the balance of units of gold credited to each said account;

said electronic gold based system permitting persons to conduct financial transactions without reliance on national currencies in conducting said financial transactions, whereby obligations, of a person receiving a said debit of said units of gold of the person'"'"'s account, to an other person receiving a said credit of said units of gold to the other person'"'"'s account, are extinguished upon posting of said records of transactions, thereby eliminating payment risk.

9. A system in accordance with claim 8 further comprising means for remote access to said computer system to submit and store records of transactions.

10. A system in accordance with claim 8 wherein said gold is of a selected purity.

11. A method of payment, using a valuable commodity as a deposit currency, implemented by a computer system, comprising the steps of:

creating a deposit account data file for each of a plurality of persons, each said deposit account data file identifying a person, and a number of units of valuable commodity stored at a deposit site for the benefit of the person;

entering records of transactions denominated in units of said valuable commodity, said records of transactions including at least an identification of a person who will receive a debit, a person who will receive a credit, the amount of such debit in units of said valuable commodity, the amount of such credit in units of said valuable commodity;

posting said records of transactions to debit and credit the deposit account data files of said persons to update said data identifying a number of units of said valuable commodity held for the account of each said person;

said method permitting persons to conduct financial transactions without reliance on national currencies in conducting said financial transactions whereby obligations, of a person receiving a said debit of said units of said valuable commodity, to another person receiving a said credit of said units of said valuable commodity, are extinguished upon posting of said records of transactions, thereby eliminating payment risk.

12. A method in accordance with claim 11 wherein said valuable commodity comprises a precious metal.

13. A method in accordance with claim 12 wherein said precious metal comprises gold.

14. A method in accordance with claim 12 wherein said precious metal comprises silver.

15. A method of payment, using an electronic valuable commodity-based payment system which does not permit fractional banking, comprising the steps of:

using a user computer operably connected to a communications network to obtain access to the electronic valuable commodity-based payment system;

entering one or more of an account number and a password to obtain access to a user account;

entering instructions on said user computer to be transmitted to said electronic commodity-based payment system, said instructions including a specification of a number of units of a valuable commodity to be transferred from said user account and an identification of a recipient to receive payment of a number of units of the valuable commodity;

said method permitting a user to make a payment without reliance on national currencies in conducting said financial transactions, thereby eliminating payment risk.

16. A method in accordance with claim 15 wherein said valuable commodity comprises a precious metal.

17. A method in accordance with claim 16 wherein said precious metal comprises gold.

18. A method for facilitating financial transactions, comprising:

recording in memory of a computer system a first balance for a first account, said first balance representing a first quantity of a valuable commodity stored at one or more secure deposit sites;

recording in memory of said computer system a second balance for a second account, said second balance representing a second quantity of the valuable commodity stored at said one or more secure deposit sites;

receiving a payment instruction at said computer system via a communications network, the payment instruction specifying a quantity of the valuable commodity, an account to be debited, and an account to be credited, wherein the account to be debited is the first account and the account to be credited is the second account;

in response to receipt of said payment instruction;

debiting by the computer system the first account; and

crediting by the computer system the second account;

said method permitting persons to conduct said financial transactions without using national currencies, whereby an obligation of the first person to the second person is extinguished when said second account is credited, thereby eliminating payment risk.

19. The method of claim 18, wherein the valuable commodity is gold.

20. A computer program embodied on a computer-readable medium and comprising code that, when executed on a computer, causes the computer to perform the following steps:

receive payment instructions denominated in units of electronic gold, said payment instructions including at least an identification of a person who will receive a debit, a person who will receive a credit, and an amount of units of said electronic gold;

posting said payment instructions to debit and credit account data files of said persons to update data identifying a number of units of said electronic gold held for each said person;

whereby said persons may make and receive a payment without reliance on national currencies in conducting said financial transactions, thereby eliminating payment risk.

21. An electronic commodity-based system for conducting financial transactions, comprising:

at least one deposit site having secure facilities for storage of a valuable commodity;

an inventory of a valuable commodity stored in said secure facilities at said deposit site, said inventory including a quantity of units of said valuable commodity held at said deposit site for at least one identified account;

a computer system for processing data for accounting transactions denominated in said units of said valuable commodity, said computer system having at least one data storage device and data processing software that records a balance of units of said valuable commodity credited to each said account;

said software being operable to receive payment instructions transferring an interest in units of said valuable commodity from one account to another account;

said payment instructions including at least an identification of a first account that will receive a debit, and a second account that will receive a credit, an amount of units of said valuable commodity, said payment instructions thereby being used to update data regarding the balance of units of said valuable commodity credited to each said account;

said electronic commodity-based system permitting persons to conduct financial transactions without reliance on national currencies in conducting said financial transactions, whereby obligations of a person whose account receives said debit of said valuable commodity to another person whose account receives said credit of said valuable commodity, are extinguished upon posting of said payment instructions, thereby eliminating payment risk.

22. An electronic commodity-based system in accordance with claim 21, wherein the valuable commodity is gold.

23. An electronic commodity-based system for conducting financial transactions, comprising:

one or more secure deposit sites for storage of a valuable commodity;

an inventory of the valuable commodity stored in said one or more secure deposit sites;

a computer system for processing data associated with transactions denominated in units of said valuable commodity, said computer system being adapted to;

maintain a plurality of accounts, each account having a balance representing a quantity of the valuable commodity stored at said one or more secure deposit sites, wherein said accounts include a first account associated with a first person and a second account associated with a second person;

receive a payment instruction via a communication network, the payment instruction specifying a quantity of the valuable commodity, an account to be debited, and an account to be credited, wherein the account to be debited is the first account and the account to be credited is the second account;

in response to receipt of said payment instruction;

debit the first account; and

credit the second account; and

said electronic commodity-based system permitting persons to conduct said financial transactions without using national currencies, whereby an obligation of the first person to the second person is extinguished when said second account is credited, thereby eliminating payment risk.

24. An electronic commodity-based system in accordance with claim 23, wherein the valuable commodity is gold.

25. An electronic commodity-based system for conducting financial transactions, comprising:

one or more secure deposit sites for storage of a valuable commodity;

an inventory of the valuable commodity stored in said one or more secure deposit sites;

a computer system for processing data associated with transactions denominated in units of said valuable commodity, said computer system being adapted to;

maintain a plurality of accounts, each account having a balance representing a quantity of the valuable commodity stored at said one or more secure deposit sites, wherein said accounts include a first account associated with a first person and a second account associated with a second person;

receive a payment instruction via the Internet, the payment instruction specifying a quantity of the valuable commodity, an account to be debited, and an account to be credited, wherein the account to be debited is the first account and the account to be credited is the second account;

in response to receipt of said payment instruction;

debit the first account; and

credit the second account; and

said electronic commodity-based system permitting persons to conduct said financial transactions without using national currencies, whereby an obligation of the first person to the second person is extinguished when said second account is credited, thereby eliminating payment risk.

26. The system of claim 25 wherein the valuable commodity is gold.

27. A method of payment, using an electronic gold based payment system which does not permit fractional banking, comprising the steps of:

using a user computer operably connected to a communications network to obtain access an electronic gold based payment system;

entering one or more of an account number and a password to obtain access to a user account;

entering instructions on said user computer to be transmitted to said electronic gold based payment system, said instructions including a specification of a number of units of electronic gold to be transferred from said user account and an identification of a recipient to receive said payment of a number of units of electronic gold;

said method permitting a user to make a payment without reliance on national currencies in conducting said financial transactions, thereby eliminating payment risk.

28. A method in accordance with claim 27 wherein said identification of a recipient is an identification of a recipient account number.

29. An electronic gold based payment system which does not permit fractional banking, comprising:

a user computer operably connected to a communications network;

means for entering one or more of an account number and a password to said user computer to obtain access to a user account;

means for entering instructions on said user computer, said instructions including a specification of a number of units of electronic gold to be transferred from said user account and an identification of a recipient to receive said payment of a number of units of electronic gold;

said system permitting a user to make a payment without reliance on national currencies in conducting said financial transactions, thereby eliminating payment risk.

30. A system in accordance with claim 29 wherein said identification of a recipient is an identification of a recipient account number.