ELECTRONIC CASH ELIMINATING PAYMENT RISK

• US 20070244812A1
• Filed: 04/16/2007
• Published: 10/18/2007
• Est. Priority Date: 02/10/1993
• Status: Abandoned Application

• Current Assignee: Goldmoney Network Ltd.
• Original Assignee: Goldmoney Network Ltd.
• Inventors: Turk, James, Turk, Geoffrey
• Application Number:
  US11/735,769
• Publication Number:
  US 20070244812A1
• Time in Patent Office: Days
• 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 to allow gold to circulate as digital cash through the global computer network (Internet) and/or private communication networks much like cash currently circulates in the physical world. A computer system (emint) will create digital representations of gold (ecoins). Each ecoin will represent a weight of gold held at a participating secure storage facility (storage site), and each ecoin is given by the emint a unique identifier by which it can be distinguished and identified. The sum total of all circulating ecoins (denominated in physical measures such as weights such as grams and/or ounces and fractions thereof) will equal the weight of all the gold held for safekeeping at the storage site(s) for the users of the emint. The ownership of gold is not transferred by a computer system executing debits and credits between individual accounts, but instead by individuals directly transferring ecoins amongst themselves (as is done in cash transactions, i.e., without double-entry bookkeeping).

Claims

1. An asset based electronic cash system which does not permit fractional banking comprising:

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

an inventory of a valuable commodity stored in said secure facilities at a said storage site;

a computer system which does not permit fractional banking having;

means for maintaining records of the amount of said inventory of a valuable commodity stored in said secure facility;

means for creating electronic coins, said electronic coins comprising electronic data identifying a unique serial number and a specified amount of said valuable commodity, and having a digital signature for verifying that the electronic coins were created by said computer system;

means for transmitting said electronic coins to a system user;

means for receiving said electronic coins from a payee of said system user;

means for confirming that said electronic coins have not been previously spent;

the total of the amounts of said electronic coins issued by said computer system being less than or equal to the amount of said inventory of a valuable commodity stored in said secure facility;

said asset based electronic cash system permitting entities to conduct financial transactions without reliance on national currencies in conducting said financial transactions, thereby eliminating payment risk, whereby obligations of a system user to a payee who receives electronic coins are extinguished.

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

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

4. A system in accordance with claims 1 wherein said electronic data of said electronic coins further comprises:

a date which represents the date when said electronic coin was created.

5. A system in accordance with claim 4 wherein said system user may request issuance of blinded electronic coins such that a user who receives said electronic coins maintains his anonymity.

6. A system in accordance with claims 1, 2, 3, 4 or 5 wherein said confirming means comprises a database of said serial numbers of said electronic coins wherein a recipient of a first electronic coin may submit said first electronic coin to said computer system to determine if said first electronic coin has been previously spent.

7. A system in accordance with claim 6 wherein said computer system checks said database of said serial numbers to ensure that said first electronic coin has not been previously spent, and if said first electronic coin has not been previously spent then said computer system records said first electronic coin as spent, and creates a second electronic coin and transmits said second electronic coin to said recipient.

8. A system in accordance with claim 7 wherein said computer system subtracts an amount representing transactional costs from a specified amount of said valuable commodity identified in said first electronic coin to determine a specified amount of said valuable commodity identified in said second electronic coin.

9. A system in accordance with claim 8 wherein said transactional costs include a storage fee, and wherein said storage fee is determined based on a period of time since the date when said electronic coin was created, said date when said electronic coin was created being contained in said electronic data contained in said electronic coin.

10. A system in accordance with claim 8 wherein said transactional costs include a fee for performing said confirming that said electronic coin has not been previously spent.

11. A system in accordance with claim 6 wherein said recipient of a first electronic coin may request that said electronic coin be redeemed for one or more of the group consisting of a second electronic coin;

a credit to an account of the recipient; and

issuance of a funds transfer to an account of a third party.

12. A system in accordance with claims 1 wherein said electronic data of said electronic coins further comprises:

a name of said storage site where said valuable commodity is stored.

13. An electronic gold based system for conducting financial transactions which does not permit fractional banking, comprising:

at least one storage site having secure facilities for storage of gold;

an inventory of gold stored in said secure facilities at a said storage site;

a computer system which does not permit fractional banking having;

means for maintaining records of the amount of said inventory of gold stored in said secure facility;

means for creating electronic coins, said electronic coins comprising electronic data identifying a unique serial number and a specified amount of said gold, and having a digital signature for verifying that the electronic coins were created by said computer system, and a date which represents the date when said electronic coin was created;

means for transmitting said electronic coins to a system user;

means for receiving said electronic coins from a payee of said system user;

means for confirming that said electronic coins have not been previously spent;

the total of the amounts of said electronic coins issued by said computer system being less than or equal to the amount of said inventory of gold stored in said secure facility;

said asset based electronic cash system permitting entities to conduct financial transactions without reliance on national currencies in conducting said financial transactions, thereby eliminating payment risk, whereby obligations of a system user to a payee who receives electronic coins are extinguished.

14. A system in accordance with claim 13 wherein said system user may request issuance of blinded electronic coins such that a user who receives said electronic coins maintains his anonymity.

15. A system in accordance with claim 13 wherein said confirming means comprises a database of said serial numbers of said electronic coins wherein a recipient of a first electronic coin may submit said first electronic coin to said computer system to determine if said first electronic coin has been previously spent.

16. A system in accordance with claim 15 wherein said computer system checks said database of said serial numbers to ensure that said first electronic coin has not been previously spent, and if said first electronic coin has not been previously spent then said computer system records said first electronic coin as spent, and creates a second electronic coin and transmits said second electronic coin to said recipient.

17. A system in accordance with claim 16 wherein said computer system subtracts an amount representing transactional costs from a specified amount of said gold identified in said first electronic coin to determine a specified amount of gold identified in said second electronic coin.

18. A system in accordance with claim 17 wherein said transactional costs include a storage fee, and wherein said storage fee is determined based on a period of time since the date when said electronic coin was created, said date when said electronic coin was created being contained in said electronic data contained in said electronic coin.

19. A system in accordance with claim 17 wherein said transactional costs include a fee for performing said confirming that said electronic coin has not been previously spent.

20. A system in accordance with claim 13 wherein said recipient of a first electronic coin may request that said electronic coin be redeemed for one or more of the group consisting of a second electronic coin;

a credit to an account of the recipient; and

issuance of a funds transfer to an account of a third party.