Method, system and apparatus for increasing the deposit-based assets of banking institutions subject to fractional-reserve banking

• US 7,778,923 B2
• Filed: 04/24/2007
• Issued: 08/17/2010
• Est. Priority Date: 10/24/2006
• Status: Active Grant

• Current Assignee: The THEA Financial Services Limited
• Original Assignee: The THEA Financial Services Limited
• Inventors: Casey, Laurence P., Berntsen, William O.
• Primary Examiner(s): Trammell; James P
• Assistant Examiner(s): AMELUNXEN, BARBARA J
• Application Number:
  US11/789,260
• Publication Number:
  US 20080097900A1
• Time in Patent Office: 1,211 Days
• Field of Search: 235/379, 345/179, 705/39, 705/42, 705/44, 705/64, 705/66, 705/35, 709/229
• US Class Current: 705/42
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/3672 initialising or reloading thereof
• 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 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A method for increasing the demand deposit asset base of a bank for fractional-reserve banking within the Federal Reserve System, with first and second demand deposit accounts captive at that bank, comprising: (a) receiving physical fractional currency at the bank and increasing the first account balance in an amount corresponding to the value of currency received; (b) encrypting in a “cre-bit” device the balance of the first account including the numeric value of currency received; (c) reflecting in a node device currency amounts concomitantly linked to the second account; (d) performing a commercial transaction without the use of physical functional currency for a specific amount such that the first account is simultaneously debited and the second account is credited the specific amount; (e) repeating step (a) then step (b) and/or repeating step (c); and (f) displaying the first account balance and “cre-bit” data on the “cre-bit” device.

Claims

1. A system for increasing the demand deposit asset base of a banking institution for fractional-reserve banking within the Federal Reserve System, wherein a first and a second demand deposit account, each having a balance, are captive in that banking institution, comprising:

(a) a portable “

cre-bit”

device for encrypted containment of numeric fractional currency amounts linked to the first account at the banking institution and comprising portable transacting means for validating and performing at least one commercial transaction without the use of physical fractional currency and for a specific amount,

(b) a node device for encrypted containment of numeric fractional currency amounts linked to the second account at the banking institution and comprising node transacting means for validating and performing said at least one commercial transaction without the use of physical fractional currency and for said specific amount,

(c) an encrypted data exchange interface between said portable device and said node device for accurately communicating therebetween said specific amount of said at least one commercial transaction that comprises “

cre-bit”

data;

a credit to one and a debit to the other;

(d) upon transacting said at least one commercial transaction the two devices are configured via said respective transacting means to trigger said data exchange interface such that said “

cre-bit”

data is communicated between said two devices in order for one of the accounts to be debited for said transaction said specific amount and the other device to be credited said specific amount commensurate with said at least one commercial transaction;

(e) first communication means for communicating said “

cre-bit”

data to the banking institution to effect said crediting and debiting of said accounts such that the balance of each respective account therein is respectively properly credited and debited said specific amount in accordance with said at least one commercial transaction;

(f) second communication means for communicating within the Federal Reserve System changes in the demand deposit asset base at the banking institution for fractional-reserve banking within the Federal Reserve System; and

(g) said portable “

cre-bit”

device comprises a microprocessor, display means for displaying said balance of said first account and “

cre-bit”

data, operator interface means for entering, sending and receiving said “

cre-bit”

data, power, memory, and wireless communication means for communicating with said node device.

2. The system of claim 1, wherein said at least one commercial transaction comprises fractional currency.

3. The system of claim 1, wherein the balance in at least one of said demand deposit accounts is increased by the value representing and corresponding to units of physical currency collected prior to said at least one commercial transaction.

4. The system of claim 1, wherein said portable device further comprises security means for validating the transaction and interoperability of the respective portable and node devices.

5. The system of claim 1, wherein said node device comprises a microprocessor, display means for displaying said balance of said second account and “

cre-bit”

data, operator interface means for entering, sending and receiving said transaction related and balance related data, power, memory, and communication means for communicating with the banking institution and said portable device.

8. The method of claim 1, wherein at least one of the captive accounts comprises fractional currency.

6. A method for increasing the demand deposit asset base of a banking institution for fractional-reserve banking within the Federal Reserve System, wherein a first and a second demand deposit account, each having a balance, are captive in that banking institution, comprising:

(a) receiving physical fractional currency at the banking institution and increasing the balance of said first deposit account in an amount corresponding to the value of the currency received;

(b) encrypting in a portable “

cre-bit”

device the balance of said first account including the numeric value of the currency amounts received;

(c) reflecting in a node device currency amounts concomitantly linked to the second accountant at the banking institution;

(d) performing at least one commercial transaction without the use of physical fractional currency and for a specific amount in a manner that provides that the first account is simultaneously debited said specific amount and the second account is credited that amount in accordance with said at least one commercial transaction, comprising the steps of;

(1) communicating in an encrypted manner between said portable device and said node device accurate “

cre-bit”

data reflecting the commercial transaction that comprises a credit to one and a debit to the other in the specific amount;

(2) transacting the commercial transaction between the two devices such that said currency amount encrypted in said portable device is debited for the transaction said specific amount and said currency amount reflected in said node device is credited said specific amount commensurate with the commercial transaction and in accordance with said “

cre-bit”

data; and

(3) communicating said “

cre-bit”

data to the banking institution;

(4) adjusting the balances of each respective account at the banking institution by simultaneously crediting and debiting the respective account in accordance with the commercial transaction and said “

cre-bit”

data; and

(5) concomitantly updating the respective currency amounts to equal the respective adjusted balances;

(e) repeating at least one step selected from the group consisting of;

(1) step (a) then step (b); and

(2) step (c); and

(f) displaying on demand upon said “

cre-bit”

device said balance in said first account and “

cre-bit”

data.

7. The method of claim 6, wherein said at least one-commercial transaction comprises fractional currency.

9. An apparatus for increasing the demand deposit asset base of a banking institution for fractional-reserve banking within the Federal Reserve System, wherein a first and a second demand deposit account, each with a respective balance, are captive, comprising:

(a) portable means for encryption and display of a fractional currency amount linked to the first account at the banking institution and comprising transacting means for performing and validating at least one commercial transaction affecting the balance of the first account;

(b) node means for encryption and display of a fractional currency amount linked to the second account at the banking institution and comprising node transacting means for performing and validating said at least one commercial transaction affecting the balance of the second account;

(c) encrypted interface means between said portable device means and said node device means for communicating between said transacting means data reflecting said at least one commercial transaction comprising a credit to one account and a debit to the other account for a specific amount that includes fractional currency (“

cre-bit”

data);

(d) transmitting means for transmitting said “

cre-bit”

data between the portable and node means such that the balance of one account is debited for the transaction said specific amount and the other account is credited said specific amount commensurate with said at least one commercial transaction;

(e) approving means, operatively contained in said portable means, which, when approvingly engaged, encryptically transmits to and receives from said node means said “

cre-bit”

data; and

(f) first communicating means for communicating said “

cre-bit”

data to the banking institution;

(g) bank transacting means for adjusting the balances of each respective account in accordance with the commercial transaction, specific amount and “

cre-bit”

data;

(h) second communication means for communicating within the Federal Reserve System changes in the demand deposit asset base at the banking institution for fractional-reserve banking within the Federal Reserve System; and

(i) display means for optional confirmatory display of currency amounts at the respective node and portable means.

10. The apparatus of claim 9, wherein said at least one commercial transaction comprises fractional currency.

11. The apparatus of claim 9, wherein the balance of at least one of the accounts comprises fractional currency.

12. The apparatus of claim 9, wherein the portable means comprises a microprocessor, display means for display of the balance of said first account, operator interface means for entering and receiving transaction related and balance related data, power, memory, and wireless communication means for communicating with the node means.

13. The apparatus of claim 9, wherein said portable means further comprises security means for ensuring security via operator identification and transaction validation for the respective portable and node means.

14. The apparatus of claim 13, wherein said microprocessor is an ARM Processor, said display means is an LCD display approximately one inch by one inch, said operator interface means comprises a mouse-type button, LED and wheel, power is provided by a battery, memory comprises memory selected from the group consisting of SRAM, Flash, ROM and combinations thereof, and said communication means comprises a Bluetooth chip and accompanying antenna.

15. The apparatus of claim 9, wherein the node means comprises a microprocessor, display means for displaying the balance of said second account, communication means for communicating with operators of the device, operator interface means for entering and receiving transaction related and balance related data, power, memory, and communication means for communicating with the banking institution and portable means.