The level of crypto related frauds keeps growing each day and it is not surprising that several financial institutions are being skeptic towards crypto transaction and everything else involving cryptocurrencies in general. Bank of America is among the financial institutions concerned about crypto transactions.
In May last year, Bank of America’s Chief Technology Officer, Cathy Bessant complained that cryptocurrency transactions are troubling due to lack of transparency between the sender and receiver. According to Bessant, the relative lack of transparency in crypto ecosystems is a major stumbling block for financial systems. Despite the fact that the cryptocurrency ecosystem has greatly evolved compared to its early days, BOA still believes in ‘’better safe than sorry’’.
BOA Secures a Patent for Cryptocurrency Risk Detection
The North Carolina-headquartered bank, which also happens to be the second largest bank in the United States has secured a patent for a crypto risk detection system as a way of signalling their concern for the crypto community bases on the assets held by the bank.
According to a filing with the United States Patent and Trademark Office, (USPTO) the patent granted to the Bank of America is for cryptocurrency risk detection system for blockchain payments. The statement was attached as follows;
“As technology advances, financial transactions involving cryptocurrency have become more common. For some enterprises, it may be desirable to calculate the risk for performing a cryptocurrency transaction.”
The main aim towards this filing is so as to reduce any risks attached to crypto related transactions. In short, the patent aims to maintain the transparency and security of crypto transactions. According to a news source, the system will include a processor that can;
- Receive a request from the customer to perform a crypto transaction with a requested third party
- Retrieve blockchain information
- Determine the value and history of crypto transaction
- Calculate the risk score of the transaction based on the crypto amount on the transaction
Apparently, more than one processor can be integrated onto the system in such a way that several transactions can be tagged at the same time. The patent outlined the public key usage, transaction history as well as crypto-units in question.