Square wins patent for network that processes cryptocurrency payments
With each passing day, cryptocurrency adoption has risen and will likely continue to spread owing to recent progress in the space. Payments processor Square Inc recently won a patent for a payment network which will allow merchants to accept payments in any currency – including digital coins.
According to public documents dated August 21, the U.S. Patent & Trademark Office (USPTO) has approved the application filed by the company in September last year.
“The disclosed technology addresses the need in the art for a payment service capable of accepting a greater diversity of currencies…including virtual currencies including cryptocurrencies (Bitcoin, Ether, etc.),” the company stated in the patent application obtained by CCN.
If implemented by Square, this could mark a landmark in cryptocurrency adoption, owing to the fact that the company is among the top traditional payment processors.
“…the present technology supports payment using cryptocurrency, while improving such transactions in a way that takes advantage of benefits of such transactions while overcoming drawbacks such as delays in processing,” the application stated.
Among other features of the network, the patent explains how the POS system can eliminate latency in cryptocurrency transactions.
This means that transactions made on the network can be approved at roughly the same speed as a credit card transaction. That also includes Bitcoin [BTC] transactions, which are widely known for slow verification speed.
“…the technology provides benefits that removes barriers to transactions that might inhibit international commerce, or commerce with certain types of currency,” the patent added.
Square backs Bitcoin [BTC]
Square has been increasingly ways to expand its cryptocurrency services. Recently, the company announced that it had earned revenue of around $34 million and $37 million in Bitcoin [BTC] in the first and second quarters of this year, respectively.
The company’s Cash App allows users to store, sell and buy Bitcoin [BTC] in a mobile wallet. The fees charged by the app contribute to the company’s Bitcoin revenue.
Square was founded by Twitter CEO Jack Dorsey, who has publicly spoken about his support for Bitcoin [BTC].
“We support Bitcoin [BTC] because we see it as a long-term path towards greater financial access for all. This is a small step,” he had earlier tweeted.
Additionally, in a recent earnings call, Dorsey mentioned that Square’s interest in Bitcoin went beyond just buying and selling the coin. He added that the company viewed cryptocurrency as a “transformational technology”.
Image via Shutterstock
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