Square Has Patented a Crypto-Fiat Payment Network

Square on Tuesday received an American patent on payment network technology for direct crypto-fiat transactions.

According to a notice from the US Patent and Trademark Office, the payment network allows users with assets of various types to conduct transactions between themselves in real-time.

“The present technology permits a first party to pay in any currency, while permitting the second party to be paid in any currency,” reads Square’s application. The network itself can automatically exchange the sender’s payment into the asset specified by the receiver.

It is expected that such a system will be useful for representatives of the retail industry. Cryptocurrencies are characterized by increased volatility, which prevents their distribution as a means of payment. Many sellers refuse to work with them due to the fact that during the processing of a payment, which can take up to several hours, the rate can change significantly.

As an additional advantage of such a system, Square points to the possibility of using anonymous cryptocurrencies for users who do not want to reveal their identities. In addition, other types of assets can be added to the system, such as securities, derivatives and loans.

Founded by Twitter creator Jack Dorsey, Square began working with Bitcoin in 2018. Dorsey himself has repeatedly stated about the ability of Bitcoin to become “currency of the Internet.” On Tuesday, Square’s crypto division announced a set of tools for integrating Lightning payments into Bitcoin wallets.

Author: Marko Vidrih

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