PayPal’s Move to Patent Bitcoin Payment Device to Benefit Online Poker
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The latest new reports say that PayPal has filed an application in the US to patent a modular system of payment that would enable it to process payments in cryptocurrencies such as Dogecoin, Litecoin, and Bitcoin.
PayPal Anxious to Process Bitcoin Payouts
According to the patent application, PayPal wants to generate “a virtual currency wallet system,” which will allow it to handle transactions between bitcoin-mining computers.
A few weeks back, the European Commission (EC) had stated its intention to update its money laundering laws to include a wide range of cryptocurrencies such as bitcoins. As the debate regarding the impact of regulation on cryptocurrencies continues to rage, political bodies and online payment processes feel that bitcoin is well on the way of gaining greater acceptance.
Ever since the day of its launch, the cryptocurrency has been considered by many to be one of the most secure ways for people to buy and sell products and services online. At the same time, it has to be admitted that bitcoin hasn’t succeeded in retaining the interest it had initially generated. In fact, the very feature that made it popular also turned out to be its biggest drawback and that feature is its detachment from banking systems, which makes it hard to trace and insure.
PayPal’s Latest Move to Benefit Online Poker
Online poker players are concerned about not only plumping, but also securing their bankrolls, owing to which operators of online poker gaming services were quick to integrate Bitcoin as a payment option in their systems. PayPal’s latest move, however, could lead to a larger number of online poker rooms accepting Bitcoin as a payment option.
If PayPal gets the patent it has applied for, online poker rooms will not have to sign deals with Bitcoin wallets. This would make Bitcoin a non-geographical payment option as a majority of online poker rooms already accept payments through PayPal.
More about PayPal’s Patent Application
PayPal applied to the US Patent and Trademark Office (USPTO) on May 26 to patent a physical device capable of processing a variety of payments and including support for cryptocurrencies such as bitcoins. This device is made up to a payment module database and a payment module engine.
The payment module engine is capable of connection not only to wireless communication systems to ensure connectivity, but also to physical interfaces such as readers and connectors. The payment module database comprises a component to store information related to the funding source and another to store information related to security issues. While the former stores information related to a variety of payment sources such as bitcoin wallets and PayPal accounts, the latter handles authentication.
The patent supports several currencies, including physical cards, virtual cards, credit cards, bitcoins, dogecoins, and litecoins. PayPal also has plans for the integration of TrueCrypt into its device to protect information about bitcoin wallets and credit cards.
