PayPal Files Patent For "Virtual Currency Transaction System"

While cryptocurrency traders continue to patiently wait for the "golden grail", i.e. an announcement by Amazon  it will begin accepting cryptos as valid payment,  other online vendors are starting to make quiet moves. Case in point: on March 1, PayPal filed a patent application  for an "expedited virtual currency transaction system", first flagged by Bitcoin

Here is how Paypal explains the patent:

Expedited virtual currency transactions are provided by identifying a first user primary wallet associated with a virtual currency and including a first user primary wallet private key. First user secondary wallets are created that each include a respective first user secondary wallet private key, and a respective virtual currency transaction is performed using the first user primary wallet private key to transfer predefined amounts of the virtual currency from the first user primary wallet to each of the first user secondary wallets such that first user secondary wallets are provided with different predefined amounts of the virtual currency. Subsequently, an instruction is received to transfer a payment amount to a second user, and the second user is allocated a subset of the first user secondary wallet private keys included in respective first user secondary wallets that are associated with predefined amounts of the virtual currency that equal the payment amount.

The last time it was reported that Paypal filed a patent application related to cryptocurrencies was back in mid-2016 when it showed plans for a modular payment module that accepted bitcoin, litecoin and dogecoin.

According to, the patent filing "reveals that Paypal might be considering expanding its exposure to the cryptocurrency ecosystem with a new system for speedy transactions."

We shouldn’t however expect a Paypal Lightning Network or anything close to that any time soon. There is currently a global race to file patents for everything crypto or “blockchain” related and the company might just be strengthening its portfolio for future patent battles.

The Paypal application explains that the need for this proposed system for cryptocurrencies is due to the time delay or latency period between the initialization of the transaction and the point at which the transaction has been confirmed. It gives as an example waiting for ten minutes or more for a bitcoin conformation, which they indicate hurts the user experience, putting it at a disadvantage over seemingly instant choices such as fiat credit card payments.

“In many transaction situations, a 10 minute wait time will be too long for payers and/or payees, and those payers and/or payees will instead choose to perform the transaction using traditional payment methods rather than virtual currency. Issues like this have slowed the adoption of virtual currencies despite their advantages. Thus, there is a need for an expedited virtual currency transaction system,” explains Paypal

In any case, this system could potentially speed up bitcoin BTCUSD transactions while remaining anonymous.

News of the patent spiked Paypal stock to session highs, after starting the day at session lows after the WSJ reported that Amazon was preparing its own branded checking account. YTD PayPal stock has soared 84%.

Having traded largely flat on the day, cryptocurrencies have seen a bid in recent trading as the news of the patent has spread.

Needless to say, formal acceptance of cryptocurrencies by one or more online merchants and intermediaries has long been seen as the catalyst that would send the price of cryptos significantly higher as it would be a harbinger of far broader adoption, and - finally - actual usage.


Looney FreeShitter Mon, 03/05/2018 - 13:57 Permalink


Slightly OT…

I just received the “BitCoin” coin I ordered on eBay more than a month ago.

This is the COOLEST worthless-piece-of-shit I’ve ever held in my hands! I can only imagine how exciting it is for the BitCoin owners to hold their hard-earned REAL BitCoins in their hands.   ;-)



I’ve been a BitCoin cynic since before Satoshi Nakamoto played Mr. Miyagi in The Karate Kid.

Well… Yesterday, I finally bought my first BitCoin! It is supposed to arrive between Feb.22 and Mar.24 from Hong Kong. It is made of Iron, gold-plated, 1.5” in diameter, and it costs only $0.99 a piece!

Now, I gotta find a BitCoin Exchange, so I can start day-trading it as soon as it arrives.

I’m psyched!!!   ;-)


In reply to by FreeShitter

evoila IH8OBAMA Mon, 03/05/2018 - 14:47 Permalink

They perfected the art of making money the way banks do. Nobody actually moves money, they just fire 2 statements to the database, debit this, credit that, and charge you a transaction fee for it.

That's what PayPal is going to do. You don't need this massive distributed ledger to verify crap.  It's really already being done, because of redundancy at the data center level.  Do you really need 3,000,000 ledgers running on a bunch of mining machines. 

It's the same system we have, except with lower transaction fees, and non USD denomination.  

The key will be what it's backed by, but that's pretty simple given that nobody has given a shit about that for any of these craptocurrencies to date.

In reply to by IH8OBAMA

stacking12321 evoila Mon, 03/05/2018 - 14:48 Permalink

this attempt at a patent by paypal is an example of the crookedness and brokenness of the patent system.

contrary to the mainstream explanation, this patent does not give paypal the "opportunity to innovate" (they already have that opportunity), but rather it gives them a government-granted monopoly on some aspect of the payments space, which they can then use to sue and harass competitors who work on anything remotely similar.

in other words they plan to use the violence of the government to engage in anti-competitive practices, and stifle new technologies and new companies.

In reply to by evoila

putaipan Looney Mon, 03/05/2018 - 14:13 Permalink

yeah well... cool for you. i've always kept this to myself, but- i bought my first bitcoin on ebay too

it cost me 26$ when btc was 13. face value now 11200$ and the only other one of its series i have seen sold 

was for 27000$ when btc had slid to 6000$. btc with neusmatic value bitches!

In reply to by Looney

syzygysus Looney Mon, 03/05/2018 - 14:36 Permalink

Stacker!  I knew it, you're a stacker!


I'll bet the 10oz "BitCoin" is even cooler.  I wonder if they have any 90% junk bags for sale.  Hmm.  JunkCoin, the more you rub it, the shinier it gets.

In reply to by Looney

animalspirit Looney Mon, 03/05/2018 - 16:13 Permalink

eBay is about the only exchange you'll find for that crap.

Meanwhile, had you instead bought $1 worth of $BTC back then from a real Bitcoin exchange a couple weeks ago, you'ld have about $1.30 worth, or more, today.

In reply to by Looney

BarkingCat Disgruntled Goat Mon, 03/05/2018 - 18:06 Permalink

I just talked to a guy who is selling on eBay and I was shocked at the 10% fee.

He said that every sale is a 13% skim right off the top.

Amazon is actually even worse for sellers.


Considering the low entry barrier to complete with eBay, I am shocked that they have such a monopoly. 

I remember the early days when there was and couple of other sites.

Hell, back then, even Yahoo had shopping and I bought a few things from there. I was shocked when they closed it down. Seemed like an easy way to make money.

In reply to by Disgruntled Goat

dark fiber Mon, 03/05/2018 - 14:05 Permalink

I will need several flowcharts to explain how broken the US patent system is especially when it comes to software and the internet.  This patent is a whole lot of obvious bullshit.

American Sucker Mon, 03/05/2018 - 14:09 Permalink

The filing date is August 30, 2016, and I'm pretty sure people were using virtual wallets with cryptocurrencies before that.  I would expect the broadest claims (Claims 1, 7, and 14) to be rejected, and for PayPal to have to settle for much narrower claims, if they can patent the invention at all.

PayPal will also struggle with 101 issues, namely that the patent system often considers software-based inventions to be too "abstract" to be patentable.  Unfortunately, there isn't a good definition of too abstract, and everyone in the patent system is confused and frustrated.

Bunga Bunga Mon, 03/05/2018 - 14:42 Permalink

"In many transaction situations, a 10 minute wait time will be too long for payers and/or payees, and those payers and/or payees will instead choose to perform the transaction using traditional payment methods rather than virtual currency."

LOL, they do mix up payment notice with settlement. After 10 minutes the payment is settled, after 60 mins with astronomical security, that it can't be reversed. Traditional payment methods take days to settle, payments can be reversed even after months. No merchant waits days or even months before the payment has settled, they just take the risk. With Bitcoin they can do the same and accept the broadcast of a tx as payment.

Consuelo Mon, 03/05/2018 - 14:44 Permalink

Enjoy your profits - and more power to ya if you're nailing 'em.   Just keep in mind that these are the blocks being laid that will one day ensure you will not be able to transact outside a cashless system, legally.    Remember also, that high-tech, banking and pharmakia have revolving door access to Congress and the Presidency - no matter who sits at any given period.

83_vf_1100_c Mon, 03/05/2018 - 14:47 Permalink

  PayPal is losing their long term assocation as the primary payment system with eBay.  eBay is moving to another company. Adyen, a Dutch company, is picking it up. This puts paypal on notice that the status quo is dead. They are gonna have to adapt or die. PPCoin gonna save them? Doubt it. I run a small biz and got my start on ebay. It was great 10+ yrs ago. Today ebay is sellers hell. I hate eBay now. We started our own website and work the product related forums hard. As the website gains traction I will gladly say goodbye to ebay. For now they are still a necessary evil but less so every year. Paypal is how we tend to get paid. They skim their 3%. I would be happy to see a viable stable crypto  come out to replace it. If it saves me money and is not just another fee based system.

Peak Finance EcoJoker Mon, 03/05/2018 - 15:19 Permalink

ebay is nothing but rip-offs and scams now, it's terrible.

It died YEARS ago and I can't understand how someone doesn't just start a "new" ebay using their rules from pre-2005 and make a killing. 

It's been downhill since the retard-ceo said like 10 years ago how he did like how ebay "looked like an on-line garage sale" Yes, they hired a CEO that just totally didn't get it or their entire reason to exist. 

Now you get better deals on Amazon Prime


In reply to by EcoJoker

Hongcha Mon, 03/05/2018 - 15:31 Permalink

BABA, JD and TCEHY are the alpha males in this arena - PYPL and AMZN and FB are big fish in a smaller pond. 1/4 the size of China, essentially ... and, unlike China's, not expanding.

TCEHY virtual currency, once developed and unleashed, will be the 'reserve crypto'.

hackjealousy Mon, 03/05/2018 - 16:09 Permalink

If you believe that is why the price bounced, you may be retarded.

If you think it's a good idea to give PayPal your private key, as in the patent, you may be retarded.


Hell, if you read this article at all you are definitely dumber.