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Chase-ing Bitcoin: Is JPM Preparing To Unveil Its Own Electronic Currency?
If you can't beat 'em, join 'em, copy 'em, and then beat 'em. While everyone's attention has been glued to Bitcoin (and its various smaller and less viable for now alternative digital currencies), JPMorgan has submitted a patent which appears to set the scene for a competing centralized network to Bitcoin. As LetsTalkBitcoin noted first, the "Method and system for processing internet payments using the electronic funds transfer network," states that Chase's technology is a "new paradigm." Moreover that it permits the creation of "virtual cash" (also referred to as "web cash") with a "real-time digital exchange of value."
Imagine paying for some product in a transaction directly with the seller that doesn’t include a costly third-party fee or the revelation of a personal account number — the current components that comprise credit card and debit card purchases. Imagine this system with a “real-time digital exchange of value.” And imagine that you can archive all the transactions in a personal digital wallet, with its own “Internet Pay Anyone (IPA)” account and inherent safeguards built-in, something that you could call “Virtual Private Lockbox (VPL),” according to JPMorgan’s patent.
If this “web cash” system — as JPMorgan Chase calls it — seems familiar, it should. It smacks of the peer-to-peer transactions of bitcoins and other cryptocurrencies that increasingly are making the world’s biggest banks uneasy about the future of e-commerce.
The patent, first revealed by LetsTalkBitcoin.com, is a fascinating look into JPMorgan’s veiled outlook on the evolving but growing bitcoin universe, and other more widely-accepted payment systems.
JPMorgan’s proposed system offers another eerily familiar component, which seemingly mimics “blockchain,” a publicly available, permanent ledger of bitcoin transactions.
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Without naming the virtual currency or any competing payments system by name, the bank takes a swipe at the crytocurrency model.
“None of the emerging efforts to date have gotten more than a toehold in the market place and momentum continues to build in favor of credit cards,” according to Chase’s patent application published by The United States Patent and Trademark Office (USPTO). It was filed August 5th, 2013.
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JPMorgan Chase sees “a new marketplace” emerging for “low dollar, high volume, real-time payments with payment surety for both consumers and producers.”
As LetsTalkBitcoin.com points out, “Bitcoin has also been ballyhooed for it use with micro-payments and payments under ten dollars due to its zero to negligible fee structure.”
JPMorgan Chase: “The present invention further enables small dollar financial transactions, allows for the creation of ‘web cash’ as well as provides facilities for customer service and record-keeping.”
While naming protocols for these vitual currencies is uncertain, we can't help but think "Dimons" would be appropriate as the web cash becomes increasingly more trusted.
LetsTalkBitcoin discusses how JPMorgan's proposed system works:
Under The Hood: Internet Pay Anyone
“…The structural components to the system of the present invention include:
a Payment Portal Processor; a digital Wallet;
an Internet Pay Anyone (IPA) Account;
a Virtual Private Lockbox (VPL);
an Account Reporter;
the existing EFT networks;
and a cash card.
“…The Payment Portal Processor (PPP) is a software application that augments any Internet browser with e-commerce capability. The PPP software sits in front of and provides a secure portal for accessing (finking to) the user’s. Demand Deposit Accounts (DDA) and IPA accounts. The PPP enables the user to push electronic credits from its DDA and IPA accounts to any other accounts through the EFT network…”
“…The {technology} …includes freely publishing the payment address and making it available to users of an internet portal or search engine…”
“…Currently, all Internet transactions use “pull” technology in which a merchant must receive the consumer’s account number (and in some cases PIN number) in order to complete a payment. The payment methods of the present invention conversely use “push” technology in which users (consumers or businesses) push an EFT credit from their IPA or DDA accounts to a merchant’s account, without having to provide their own sensitive account information…”
A New Paradigm
“…The present invention represents a new paradigm for effectuating electronic payments that leverages existing platforms, conventional payment infrastructures and currently available web-based technology to enable e-commerce in both the virtual and physical marketplace. The concept provides a safe, sound, and secure method that allows users (consumers) to shop on the Internet, pay bills, and pay anyone virtually anywhere, all without the consumer having to share account number information with the payee. Merchants receive immediate payment confirmation through the Electronic Funds Transfer (EFT) network so they can ship their product with confidence that the payment has already been received. The present invention further enables small dollar financial transactions, allows for the creation of “web cash” as well as provides facilities for customer service and record-keeping…”
and the implications:
I view this technology and patent application as an overwhelming good thing. Bitcoin is driving Innovation. It has been said that credit cards and the legacy banking system in use today was never meant for use over the internet. Chase’s updated Internet Pay Anyone technology appears to come head to head with Bitcoin.
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While it remains to be seen if this technology is a “Bitcoin Killer,” other players such as eBay/PayPal (which have been riding under Bitcoin’s coattails through marketing gimmicks) ought to pay close attention to this emerging technology. If Bitcoin does get a “toehold” in the marketplace, we just might see this technology activated. The Chase is on.
Finally, the patent application itself (source USPTO):
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Possibly Iceland. Free power and cooling :-)
Methinks the alts already listed on the exchanges should pop first.
Disclosure: Long
DGC/BTC
FRC/BTC
FTC/BTC
I0C/BTC
IXC/BTC
LTC/BTC
NMC/BTC
PPC/BTC
TRC/BTC
WDC/BTC
XPM/BTC
The Bitcoin Channel
Apple is scared of Bitcoin too: http://techcrunch.com/2013/12/09/how-does-apple-really-feel-about-bitcoi...
There goes the neighborhood...
Dimon=Cryptomaniac
I bet the transaction costs will not be trivial.
This only ends in sweeping regulation legislation.
Great comments here, esp. crashisoptimistic.
How about some reality. The Internet has passed many, many Americans by. Remember Future Shock? Many older folks in the U.S. do nothing on the www besides maybe, maybe send an e-mail or look at some photos.
I LOL at the inept advertisements trying to get peeps to go to their keyboards and 'Log In and Sign Up' for the ACA as if it's tantamount to taking out the trash (the latter being a far higher calling).
We are coming up on 20 years for the www as we know it.
The younger people, who have been jacked in since age 5 or 10 to borrow Neal Stephenson's phrase (and quite a seer he proved to be, kudos) are if not already, going to learn to absolutely despise and hold in incontestable ODIUM, any and all Amerikan BANKS with every fibre of their being. That is my prediction.
What 'tech' was to the survivors in Canticle for Liebowitz, so shall BANKS be for the coming generation. The "Youth of this country" are the ones most in position to feel the restrictions of the electronic cage thrown over their entirety.
ACA. Student loan debt pursuing them forever. Et cetera. And, they have access to real news while the oldersters are taking their cues from MSM.
May this JPM abomination seek its own oblivion and right soon. Right after ACA seeks its.
(Man, I have had too much coffee this morning ;)
can't stand JPM but i'll invest in the shit massively before the sheeple do, and get away with it !!!!
Yippee! We're getting closer to having our very own currencies for each and everyone of us! For all of you thinking that trade and transactions will get easier as a result of all this currency manipulation including bitcoin and others, I have news for you.
This is how it's going down in the real world:
- BARTER
- COINS minted by the family in the community which holds the most lands and hard assets
- BANKING by the families in the community which have the highest net worth
- 10% interest rates in a tightly controlled debt market
- STRONG communities, families, law enforcement, immigration policies
Yup, we're going back to the feudal system of the 15th, 16th and 17th centuries. That will be the result of the reset that naturally happens as all this fiat bullshit and virtual imaginary book wealth goes up in smoke. At that time you want to own precious metals to set up your family on the right side of the track.
When a sound family run bank with close ties and assets in the community opens up, you may allow them to collaterize your precious metals and get a share of their banking.
That's how it's done and that's how it will go down again.
We will have all three currencies at one time, fiat, electrons, and gold and silver? Will electronic money drive out fiat? Will Gresham's law hold or will it just be irrelevant? When will people actually start using gold and silver as money again? Are you tired of paying too much for auto insurance?
Attention libertarians/Libertarians, Anarchists, genuine Privacy Seekers and the Paranoid: TPTPB (the Fed, their Shareholders and their Army, i.e. the Fed, FinCEN, DOJ, IRS, FBI, NSA, etc) will come after you via two parts of this Patent.
1. 227 (PPP - Payment Portal Processor) and its subroutine 230 (DPA or IPA account)
2. 235 (VPL - Virtual Private* Box)
* 'Private' per its Disclosure and Privacy Policy, which will have the standard stuff about Regulatory Compliance (National Security, Money/Currency laundering)
beware, jpm has also a proprietary distributed transaction authentication system. As far as the summary goes, they could talk about it: real dollars transactions, but authenticated using a distributed PKI.
A gigantic gallow should be placed in front of Diamond's house. To show him what will happen to him when the SHTF.
you dont need crytography to read my comment " ,,!,, "
Looking at the Related Application data (the 1st item in the Description section), you see "[t]his application is a continuation of U.S. Ser. No. 09/497,307 filed Feb. 3, 2000..."
In patent law, a continuation application is one that matches the original application, i.e., does not add any new and material information to the original disclosure.
Interesting that JPM kept this application submerged in the PTO for 12 years (13 years if you credit its priority claims back to 1999), and then in one fell swoop cancels all 154 pending claims and swaps in 21 brand new claims.
The timing alone is an eye-opener in view of Bitcoin, which could be seen as a beta test.
Another great job by zh.
Great observations, "Cheyenne Hawk-Eye" :-)
Let see ... If anyone is to use a crypto currency, do they need a central institution for anything? This should be a rhetorical question, of course. An in a case of a such a need (let say), do this institution needs to be a back? This is a more tricky question, but also self evident.
This is one (important) battle the banks are sure to be on the loosing side. Prepare accordingly.
News on JPM's patent application must be bullish for bitcoin, back over 1,000.
seems the scam is rising during the week and dumping over the weekend when few are paying attention?
Another avenue for more theft by the banksters.
I suppose it makes sense that JP Morgan is not adversed to STEALING IP ... or maybe it is theirs to begin with and people have simply been conned again by the Gnomes of Zurich.
If it shows up on the Simpsons it has to be controlled by evil forces... lol.
Now JPM is going to crucify us on a cross of electrons.
Currency has devolved from gold/silver, to copper, then paper. Eventually currency will be debased into nothing more than bits. The question is who will be allowed to create those bits. I believe that governments will insist that they alone will be permitted to create those valuable bits.
JPM's invention seems to be a system of digital dollars. But the US government would still retain its monopoly on creating dollars. And I'm sure JPM would make all the transaction information available to the government so the digital dollars would be fully trackable by the US gov. JPMcoin might be a threat to Paypal or Western Union. But given a choice between JPMcoin and Bitcoin, I think anyone in his right mind would prefer Bitcoin. That is why they will eventually need to make Bitcoin illegal.
99.9% of all dollars are already digital.
Got silver?
Got Bitcoin?
TBTFCoin. What a deal.
For all you bitcoin lovers out there please explain to me the following seeing how we live in a brave new world of "terrorism".
When the government "realizes" that "terrorists" can use bitcoin to sponsor "terrorism" then CONgress is going to have to pass legislation that requires a wallet identifier so each transaction can be tracked according to a useres computer identifying those that use it. Then when CONgress "realizes" that people are making psudo profits from it and are able to buy and sell without paying taxes or capital gains then your new eye are sss will make it manditorty to file your bitcoin profits and purchases based upon the transactions within your wallet. If you dont comply you can be bailed-in.
If you dont think this is a plausible scenario that your friendly government wont engage in then you haven't been paying attention to current events, let alone reading the hedge enough.
Oh, and Phonestar.......IS A Bitdouche!
"When the government "realizes" that "terrorists" can use bitcoin to sponsor "terrorism" then CONgress is going to have to pass legislation that requires a wallet identifier so each transaction can be tracked according to a useres computer identifying those that use it. Then when CONgress "realizes" that people are making psudo profits from it and are able to buy and sell without paying taxes or capital gains then your new eye are sss will make it manditorty to file your bitcoin profits and purchases based upon the transactions within your wallet. If you dont comply you can be bailed-in."
Followed by: The United States becomes a third world dictatorship as wealthy Africans trade Bitcoin on their cellphones with their Chinese counterparts. There, fixed it for ya.
The Bitcoin Channel
You didnt fix anything. You just added to something that speaks for itself. And what do you mean WHEN the USA becomes a third world country. We are already a bannan republic like most third world countries. We just have better roads and sewers...for now.
Also, how are you going to force businesses to accept bitcoins as payment? Many will sooner barter or swap to stay alive until they cant. Most will go out of business while the few remaining will be under the thumb/control by government.
I see we still have a lot of space between the ears over here at Zero Head. FYI Bitcoin 1040 :-)
17
-26
When my Fonestar thumbs down Zero Head sentiment indicator turns positive I might let go of a few. That's a long ways from here.....
The Bitcoin Channel
The patent application (not a patent) that is shown in the link (13/958881) is a continuation application and claims priority to a provisional patent application that was originally filed in 1999. The fact that the application is a "continuation" and not a "continuation-in-part" indicates that the claims of the new application are directed to an invention that was fully described in the 1999 provisional applications. Considering that the present applicaton was filed in August 2013, it would probably be a couple of years before a patent (if any) could be issued on it and it would expire around 2019.
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God help us when we discover how these scum would be manipulating this scam!
This, from a bunch of $‡Ï†®@† ßå$†å®?$ that have conducted themselves like this?!?
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http://www.zerohedge.com/news/2013-07-30/jpmorgan-7-billion-fines-just-p...
Date: April 2011
Amount: $56 million
Behavior: JPMorgan was one of several banks called out in a class-action lawsuit for overcharging or wrongfully foreclosing on active-duty military personnel. The company apologized, paid out $27 million in cash, cut interest rates on home loans and returned houses that were wrongfully foreclosed upon.
adual shift to inflation from deflation
Date: June 2011
Amount: $153.6 million
Behavior: The Securities and Exchange Commission sued JPMorgan for misleading buyers by allegedly failing to inform investors that a hedge fund assisted in picking and betting against securities in a collateralized debt obligation JPMorgan had sold in 2007. JPMorgan paid $153.6 million to settle the charges without admitting or denying the allegations.
Date: July 2011
Amount: $229 Million
Behavior: In response to a suit by federal and state authorities, JPMorgan settled allegations that it rigged the bidding process for reinvesting bond transactions that affected 31 state governments. The bank paid $229 million to settle the charges without admitting or denying the allegations.
Date: August 2011
Amount: $88.3 Million
Behavior: Talk about shady dealings. The Treasury Department alleged the banking giant violated sanction orders by conducting transactions with people or entities tied to Iran, Sudan, Cuba, and Liberia. JPMorgan Chase settled the charges and violations by paying $88.3 million civil penalty.
Date: February 2012
Amount: $5.29 Billion
Behavior: JPMorgan and four other major mortgage servicers agreed to pay a combined $25 billion to settle charges with state attorneys general, the Justice Department, and the Department of Housing and Urban Development relating to what Washington Attorney General Rob McKenna called years of “shoddy loan servicing, illegal robo-signing, and faulty foreclosure processing.” JPMorgan Chase’s share of the settlement came to $5.29 billion.
Date: February 2012
Amount: $110 million
Behavior: Along with Bank of America and a few smaller lenders, JPMorgan settled consumer litigation that claimed the banks processed checks by size—rather than by chronological order—so they could charge unwarranted overdraft fees.
Date: March 2012
Amount: $150 million
Behavior: After being sued by pension funds and investors for investing their funds in a risky structured investment vehicle that failed at the height of the global financial crisis in 2008, JPMorgan settled the suit without admitting wrongdoing.
Date: November 2012
Amount: $296.9 million
Behavior: The Securities and Exchange Commission charged JPMorgan with misleading investors about the quality of mortgages that underlay mortgage-backed securities it sold. The bank settled the charges without admitting or denying guilt.
Date: January 2013
Amount: Unclear
Behavior: Ten banks, including JPMorgan Chase, agreed to an $8.5 billion settlement with the Office of the Comptroller of the Currency and the Federal Reserve over “robo-signing” and other alleged abuses of the foreclosure process. The banks were to pay $3.3 billion to harmed borrowers and provide a combined of $5.2 billion in assistance in the form of principal reductions or mortgage modifications. JPMorgan Chase didn’t disclose its share of the settlement.
Date: March 2013
Amount: $100 million
Behavior: JPMorgan Chase agreed to return $546 million to former customers of MF Global Holdings, the investment firm run by former New Jersey governor Jon Corzine that collapsed in 2011. While it did not admit wrongdoing, JPMorgan had been threatened with a lawsuit if it didn’t return the cash that had been transferred from MF Global during the firm’s chaotic final days.
* * *
Today we can add the following:
Date: July 2013
Amount: $410 million
Behavior: FERC accuses JPM of manipulating energy prices. JPM "admitted the facts" it was charged with, but "neither admitted nor denied the violations." Instead of being shut down like Enron for engaging in essentially the same activity if to a more modest degree, JPM is fined $410 million or 0.4% of its annual projected revenue of just under $100 billion.
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Bring It* On! I have NO problem with using this system -- along with other systems (Cash and Checks/Cheques), as the situation allows.
It won't stop me from keeping my PM (although I will not buy more PM, as having 30% is ~10% too much, IMO). It also won't keep me from using Cash or BTC, when my privacy matters more than my (in)convenience.
I may not use BTC to evade current 'adversaries' (which is illegal), but to "front-run" potential future ones (e.g. detectives and lawyers of a "TBD future Adversary/Ex") - which is legal and which is why people have Trusts and LLCs: to limit financial exposure/damage. Gold may be less convenient than BTC in that regard, so having some of BOTH makes perfect sense to me.
Both BTC and PM can save you from a "Total Financial Annihilation" - an annihilation you never saw coming or were unable to stop in time.
* "It" = "Mark of the Beast"? Per Revelation 13:16-17: "...No one may buy or sell except one who has the mark or the name of the beast". If you believe that sort of stuff. Personally I'm inclined to think that the only valid "prophecies" are the "self-fulfilling" kind, which act more as "inspiration" than "fate". In my world-view, I concur with the fictitious John Connor, in that there is "No Fate but the one we make". Fuck the gods! They're just misinterpreted Space Aliens. Space aliens, like Capt. Kirk, who likes to shag his way through the Galaxy, leaving god knows how many bastard demi-Kirks behind, and his crew ("angels") and officers ("archangels") to do the explaining and clean up his mess. Nudge, nudge, ;-) ;-) <-- To use a mix of pop-culture metaphors. Seriously though...
As I posted way back in April 2013, one of the world's largest banks, HSBC, had a series of posters (as part of their "In the Future" series) at various Canadian airports, that said: "In the Future, Your DNA will be your data". Do a search, if you like. I have also posted soon after, that TPTB are working on Convergent Technologies that will bring all the pieces of the self-fulfilling "666 puzzle" together: Biometrics (mark/tattoo or implant) plus Crypto-Currencies (CC). To my knowledge** ("reliable info/sources"), intel in Santa Clara CA and Hillsboro OR is heavily involved in the biometric tech part. They are also most perfectly positioned to do cutting-edge ASICs for next-gen CC. Their Hillsboro facilities just keep on (quietly) expanding. This "666-chipset" gives their motto "intel inside" a whole new meaning. As the comedians like Jon Stewart will one day point out.
** For reason of Confidentiality, I cannot comment if my knowledge is (even in part) "first-hand". I don't want to get sued into TFA (Total Financial Oblivion), or get buggered in a US jail.
Amazing. Phonestar didn't reply. What's the matter cat got your bittongue? Or is it lodged all the way up Satoshi's ass. Bitass that is.
The Chase Is On: JPMorgan Chase Building Bitcoin-Killer
After years of allegations about involvement in Gold and Silver manipulation JPMorgan is chasing Bitcoin. So much is for Bitcoin "Gold 2.0" "Limited supply" - you can chose already from 43 listed crypto-currencies and now more are to come. After China and South Korea have banned Bitcoin from Financial Institutions the race is on among the Central Banks to outlaw it. Banksters are always ready to help here.JPMorgan involvement in the "Bitcoin-Killer" is very interesting in light of recent reports from Turd Ferguson that for the long time JPMorgan is Net Long Gold and will stand to benefit from the Gold price going higher this time. Gold is spiking up this morning to $1260 and US Dollar is very close to the crucial 80.00 level - the end of 2013 will be very interesting to say at least.
http://sufiy.blogspot.co.uk/2013/12/the-chase-is-on-jpmorgan-chase-build...
really you call 5% or whatever a spike? It needs to gain 50% just to get back to where most of the bagholders here bought in
A moderately thorough scan of the patent (20130317984) reveals that it "doesn't" solve many of the problems which need solving. But it does require that financial institutions be involved ... a dead giveaway that it doesn't solve the problem BitCoin (almost) solves ... that being anonymity and resistance to counterfeiting. The MOE we need, needs to be as safe and anonymous as cash.
I guess this explains why the bernank was careful not to diss cryptocurrencies too much. And why greenspan said that bitcoin was a bubble because it isn't backed by anything tangible, like a government (puke).
:) The ZH BTC haters have field day together with Jamie Dimon. Nice crowd... Not a word in the PA about just how much digital money they intend to set free. It might be Devalued USD that they this way want do get rid of globally. 85B fresh USD each month, still counting, They cant stop. They might try for a couple of months but will have to came back and increase the printing. The global debtload in USD simply cant be serviced with the kind of "growth" (sic) available in the future. So keep your ever shrinking USD and laugh at the rest.
This is good news for Bitcoin! If JPM is in it, there will be less chance of the government banning digital currencies. And JPM is stupid enough to make it cenralized. I can easily see the hacker community throwing everthhing they've got to break the system, judging by people's response to that "Ask JPM" Twitter fiasco.
Barclays closing bank accounts related to Bitcoin
The noose is tightening.
Hackers are working day and night stealing bitcoins. If it's bits and bytes they are all over it.
I am surprised how many people on ZH believe in this "revolution". there is nothing here. not even tulips. this is a hot potato.
I somehow can't see that overnight everyone becomes ninja and travels with family across the world and need to transfer anonymously. I get the concept, but believing this is a threat to current system is way beyond my understanding.
It can never beat anything until it is legal tender. Anonymity is the biggest threat as no company can threaten their profit margins by faith that other companies would not attack the market. Tax agencies can't confirm how many wallets you have. How can this work for anyone?
Why are you here statist?
We hear a lot about the integrity and transparency of bitcoin.
There is one big problem to buy bitcoins you have to open a account with a bitcoin "broker".
So there is counter party risk.
Every scam artist is setting themselves up as "bitcoin brokers" as they are totally unregulated of course.
Read some of the bitcoin ripoff nightmares on the bitcoin forums. Poor slobs that were taken for a ride, and lost their money and their bitcoins when they tried to get it back.
There is no legal recourse because bitcoins are not recognized by any legal authority.
There is no regulated central clearing house backed by a credible entity from which to buy them directly.
bitcoin people tout the decentralization as a plus, whereas it's a huge negative.
Buyer beware.
another clueless yahoo!! ask coinbase if they aren't regulated up their arse!!
go outside your little world once ok?? Oh that's right, this place is filled with tax evaders so you won't get close to ever doing business online..... makes sense, as you were
Fuck you Mr. Dimon.
I've personally convinced others to remove more than 200,000 from your criminal institutions.
Can I get a little help ZH'ers?
Any retailer who isn't willing to accept gold or silver for payment at this point (especially those who have embraced bitcoin) is a not paying attention.
Retailers (large and small) hold reserves.
Why not hold metal reserves. They'll get it at spot.
Normalcy bias, and a constant bombardment of how dollars and credit are they path to happiness and prosperity prevent bright people from being both bright and logical.
I stopped a good while ago attempting to connect with folks using facts and logic.
Ever seen the look in their eyes?
Fuck em
Let JPM try and make their own e-money, I predict abject failure because who in their right mind believes that JPM's cryptocurrency won't just be a kleptocurrency.
Actually it's more legit than BTC. If JPM acts as a "central bank" of their crypto-currency, they can promise to back each unit with USD.
And as shitty as they are, I have more faith in USD being exchangeable for gold than in BTC being exchangeable for USD, and then for gold.
Since this is JPM we're talking about, the name of the new currency should be TwoBitCon
The answer to the title question is:
Yes. They're called SNAP Cards.
Big Four banks’ stocks underperformed the benchmark, with JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC) up by an average 33% YTD. http://
bit.ly/BanksDecline