AU2019335592A1 - Digital currency and trading system - Google Patents

Digital currency and trading system Download PDF

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Publication number
AU2019335592A1
AU2019335592A1 AU2019335592A AU2019335592A AU2019335592A1 AU 2019335592 A1 AU2019335592 A1 AU 2019335592A1 AU 2019335592 A AU2019335592 A AU 2019335592A AU 2019335592 A AU2019335592 A AU 2019335592A AU 2019335592 A1 AU2019335592 A1 AU 2019335592A1
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digital currency
currency
digital
reserve
units
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Maxton James Bowden
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Landmoney Group Ltd
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Landmoney Group Ltd
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    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/06—Asset management; Financial planning or analysis
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/04—Payment circuits
    • G06Q20/06—Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
    • G06Q20/065—Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme using e-cash
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/38—Payment protocols; Details thereof
    • G06Q20/381—Currency conversion
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/04—Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
    • H—ELECTRICITY
    • H04—ELECTRIC COMMUNICATION TECHNIQUE
    • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
    • H04L9/00—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols
    • H04L9/50—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols using hash chains, e.g. blockchains or hash trees
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q2220/00—Business processing using cryptography
    • H—ELECTRICITY
    • H04—ELECTRIC COMMUNICATION TECHNIQUE
    • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
    • H04L2209/00—Additional information or applications relating to cryptographic mechanisms or cryptographic arrangements for secret or secure communication H04L9/00
    • H04L2209/56—Financial cryptography, e.g. electronic payment or e-cash

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  • Engineering & Computer Science (AREA)
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Abstract

A digital currency unit. The digital currency unit has asset data indicative of an asset pool linked to the digital currency unit, and reserve currency data indicative of a reserve currency linked to the digital currency uni. The asset data and reserve currency data provide for transacting and/or valuing of the digital currency unit in a digital currency transacting system or platform.

Description

DIGITAL CURRENCY AND TRADING SYSTEM FIELD OF THE INVENTION
The invention relates to an electronic system for buyers and sellers of a digital currency.
BACKGROUND OF THE INVENTION
Conventional contemporary monetary systems are based on fiat money that derives its value by being declared by a government to be legal tender. This fiat money is used as a medium of exchange and investment across the world. Digital currencies have been developed to reduce the reliance of governments on monetary systems. Cryptocurrency is a popular example of a digital currency introduced as open source software that uses cryptography to control the creation and transfer of currency. Compared to fiat money, no group or individual may abuse the production of these digital currencies. Instead, only a certain amount of cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is bounded by a value that has been prior defined and publicly known.
A present issue with cryptocurrencies is that they are one of the most volatile mediums for exchange. They have a value and price that is unpredictable and open to sudden change. It takes a great deal of time for a user to set up a trading account in an exchange. It also takes a long time to settle and receive funds when the user buys or sells on the exchange. Furthermore, cryptocurrencies typically have poor liquidity, as users do not have instant access to their digital accounts, which prevents buyers and sellers from having the ability to conduct virtually instantaneous transactions. A market with poor liquidity has the drawback of not attracting capital, as investors are uncertain about their ability to efficiently move resources to use the digital currency.
In this specification where reference has been made to patent specifications, other external documents, or other sources of information, this is generally for the purpose of providing a context for discussing the features of the invention. Unless specifically stated otherwise, reference to such external documents or such sources of information is not to be construed as an admission that such documents or such sources of information, in any jurisdiction, are prior art or form part of the common general knowledge in the art.
SUMMARY OF INVENTION It is an object of the present invention to provide an improved digital currency and/or digital currency trading system, and/or to at least provide the public with a useful alternative.
In a first aspect, the invention broadly relates to a digital currency unit, the digital currency unit comprising: asset data indicative of an asset pool linked to the digital currency unit; and reserve currency data indicative of a reserve currency linked to the digital currency unit, wherein the asset data and reserve currency data provide for transacting and/or valuing of the digital currency unit in a digital currency transacting system or platform.
In an embodiment, the asset data and reserve currency data are permanently digitally linked to the digital currency unit for its life within the digital currency system.
In one embodiment, the asset data is indicative of an asset pool comprising one or more different types of assets. In one example, the asset pool comprises real estate exclusively. In another example, the asset pool comprises real estate and other type of assets. In yet another example, the asset pool comprises non-real estate assets.
In one embodiment, the asset data is real estate data. In this embodiment, the real estate data is indicative of an asset pool comprising real estate assets that are digitally linked to the digital currency unit.
In an embodiment, each asset pool comprises a collection of residential and/or commercial real estate assets. In one configuration, each asset pool comprises real estate assets located in a single respective country.
In an embodiment, price or value of the digital currency unit in the linked reserve currency is dependent on or is a function of the value of the linked asset pool.
In an embodiment, the value of the asset pool or pools is assessed and updated periodically. In an alternative embodiment, the value of the asset pool or pools is assessed and updated arbitrarily. In other embodiments, the value of the asset pool may be assessed periodically, and with one or more additional arbitrary assessments. In an embodiment, the digital currency unit further comprises conversion ratio data indicative of a conversion ratio for converting or calculating the value of a digital currency unit in reserve currency, and vice versa. In one embodiment, the conversion ratio is 1 : 1 such that 1 digital currency unit equals 1 equivalent reserve currency unit, for example 1 dollar of digital currency is equal to 1 dollar of reserve currency.
In an embodiment, the initial value of the digital currency unit when created is based on the value of the associated or linked asset pool in the reserve currency according to the conversion ratio.
In an embodiment, the real-time or current value of the digital currency unit is based on the updated value of the associated or linked asset pool in the reserve currency according to the conversion ratio.
In an embodiment, each digital currency unit is part of a specific tranche of digital currency, each tranche being linked to the asset pool. In an embodiment, the total value of the units in the digital currency tranches corresponds to the value of the linked or associated asset pool according to the conversion ratio.
In an embodiment, each tranche of digital currency is linked or associated with a specific asset pool, such that all units of digital currency are linked to the asset pool. In an embodiment, the asset data of each digital currency unit comprises data identifying or otherwise linking to the asset pool
In an embodiment, each digital currency unit further comprises legal data indicative of or creating a legal association between the digital currency unit and its asset pool. By way of example, the legal data may comprise data indicative of or linking to information describing or identifying the legal, tmst, or contractual structures, mechanisms and/or instruments linking the digital currency unit to its asset pool.
In an embodiment, each digital currency unit comprises reserve currency data that digitally links the digital currency unit to a fiat reserve currency that corresponds to the country of its digitally linked asset pool. For example, a digital currency unit that is linked to a New Zealand asset pool, will be digitally linked to the New Zealand dollar.
In an embodiment, each digital currency unit may be sub-divided or transacted on in digital currency sub-units, the sub-units being a fractional value of the unit. The data of the digital unit may be passed onto or inherited by the sub-units. In one configuration, the extent of fractional sub-units may be defined by a fractional limit, such as a specified number of decimal places, or may be configured to mirror the fractional sub-units of the digitally linked reserve currency.
In an embodiment, each digital currency unit may further comprise a unique ID code or unique identifier.
In an embodiment, each digital currency unit may further comprise transactional data indicative of all or at least a portion of all its transactional history from creation.
In an embodiment, a digital currency unit linked to a first reserve currency has a determinable value relative to the digital currency unit linked to a second reserve currency based on the global foreign- exchange rates associated with the two different reserve currencies. For example, the value of a digital currency unit linked to a reserve currency of one country may have a determinable value in a digital currency unit lined to a reserve currency of a different country based on the conventional reserve currency foreign exchange rate between those two countries.
In an embodiment, the digital currency units may be implemented using cryptocurrency technologies, such as on or via an electronic distributed ledger technology platform.
In an embodiment, the digital currency units may be implemented and controlled centrally by an administrator or central entity.
In an embodiment, an aspect or aspects of the digital currency units may be implemented in a decentralised system. In one configuration, an aspect or aspects of the digital currency units may be implemented using distributed ledger technology, such as blockchain technology. In one configuration, transactional aspects associated with the digital currency units may be executed and stored via distributed ledger technology, such as blockchain technology.
In an embodiment, the digital currency units may be transacted on in any one or more of the following ways: purchased, sold, traded, transferred, spent, loaned, held, invested, deposited.
In an embodiment, the digital currency units may be stored or held digitally or electronically by a registered user of the digital currency system using a digital wallet. In one configuration, the digital wallet may be provided and/or accessible by an application program on an electronic device (e.g. a smartphone or tablet application) or via a website interface on a website browser, for example.
In an embodiment, the digital currency units may be accessed and spent via payment cards, such as a plastic payment card or debit card.
In a second aspect, the invention broadly relates to a digital currency system for administering and facilitating transacting of digital currency units, each digital currency unit comprising: asset data indicative of an asset pool linked to the digital currency unit; and reserve currency data indicative of a reserve currency linked to the digital currency unit, and wherein the digital currency system comprises: an electronic control system for storing and maintaining data on the digital currency units in circulation in the digital currency system.
In an embodiment, the digital currency system is configured to administer and facilitate transacting of the digital currency units of the first aspect of the invention. The digital currency units may have any one or more of the features mentioned in respect of the first aspect of the invention.
In an embodiment, the electronic control system at least partly comprises a central server or servers. For example, the central server or servers may contain a database for storing information relating to the digital currency units and/or transactions relating to the digital currency units.
In an embodiment, the electronic control system may at least partly utilizes a decentralised electronic control system. For example, the electronic control system may be blockchain technology.
In an embodiment, the electronic control system may be a cloud-based system, accessible via electronic user devices over a data network such as the internet. In such embodiments, the electronic user devices may access the system via a graphical user interface (GUI). The GUI may be provided on an application program or may be a website interface accessible via an internet browser for example.
In one embodiment, the digital currency system is configured to be accessible over a data network via a user device. In one configuration, the digital currency system is accessible via an application program installed on a user device. In another configuration the digital currency system is accessible via a website interface on an internet browser on a device to access a website. In a further configuration, the digital currency system is accessible via a cloud-based system that is accessible over a data network such as the internet.
In an embodiment, the electronic control system is configured to receive asset pool valuation update data in relation to each asset pool linked to the digital currency units in circulation. In one configuration, the valuation update data is received periodically. In other configurations, the valuation update data is received arbitrarily.
In an embodiment, the electronic control system is configured to update the value of the digital currency units in circulation in the system based on the valuation update data. In another embodiment, each digital currency unit is digitally linked to the valuation data of its respective asset pool and its value updates automatically based on the current valuation data available from the electronic control system.
In one embodiment, the electronic control system is configured to administer a single digital currency unit associated with a single asset pool. In another embodiment, the electronic control system is configured to administer two or more digital currencies concurrently, each digital currency being linked to a respective different asset pool.
In an embodiment, the electronic control system is configured to release into circulation or for purchase in the system a new supply of digital currency units on a periodic basis, such as yearly or some other frequency. In another embodiment, the electronic control system is configured to release into circulation or for purchase in the system a new supply of digital currency units on an arbitrary basis.
In one embodiment, the electronic control system is configured to administer a single denomination of digital currency associated with one type of reserve currency. For example, the system may operate with respect to a single reserve currency, such as that associated with a selected country. In such embodiments, the asset pool linked to the digital currency are located in that same selected country.
In another embodiment, the electronic control system is configured to administer two or more denominations of digital currency associated with two or more types of reserve currencies. For example, the system may operate with respect to two or more reserve currencies associated with two or more countries. In such embodiments, the respective asset pools linked to the different denominations of digital currency will be located within those two or more countries.
In an embodiment, the electronic control system may further comprise a foreign-exchange module or system that is configured to receive periodic or real-time foreign-exchange data relating to the reserve currencies associated with the one or more denominations of digital currency administered in the system.
In an embodiment, the electronic control system may be configured to facilitate the trading of one denomination of digital currency for another demonization of digital currency based on the relevant foreign-exchange data of the associated reserve currencies.
In an embodiment, the electronic control system may be configured with a conversion module or system for converting reserve currency into digital currency, and vice versa, based on a configurable conversion ratio. In this embodiment, the conversion ratio may be 1:1.
In an embodiment, the electronic control system is configured to maintain a database or registered users of the digital currency units.
In one embodiment, the electronic control system maintains real-time electronic records of the digital currency account balances of registered users.
In an embodiment, the electronic control system is configured to store transactional data relating to the digital currency units. In another embodiment, a decentralised mechanism is used to store transactional data relating to each digital currency unit.
In one embodiment, the electronic control system creates and maintains digital wallets for registered users, to enable registered users to transact with their digital currency units.
In a third aspect, the invention broadly relates to a method of creating digital currency for transactions and/or investment, the method comprising: purchasing assets with a reserve currency and grouping the assets into an asset pool; generating a new supply of digital currency units for circulation in a digital currency system, the digital currency units of the new supply being digitally linked to the asset pool and digitally linked to the reserve currency used to purchase the assets; issuing the new supply of digital currency for users of a digital currency system to purchase for subsequent transactions and/or investment via the digital currency system; and periodically and/or arbitrarily assessing the current value of the asset pool in reserve currency and updating the value of the digitally linked digital currency units based on the updated reserve currency value of the asset pool.
In an embodiment, the assets are real estate assets.
In an embodiment, the method comprises updating the value of the digital currency based on the updated reserve currency value of the asset pool and a conversion ratio, the conversion ratio determining the value of a digital currency unit relative to its reserve currency unit. In this embodiment, the conversion ratio may be 1: 1.
In an embodiment, the method further comprises periodically purchasing new assets for the asset pool, and periodically issuing new supply of digital currency into the digital currency system linked to the asset pool.
In one embodiment, the method comprises purchasing assets in a single country in a single reserve currency, and issuing a single denomination of digital currency. In another embodiment, the method comprises purchasing assets in two or more countries in their respective reserve currencies, and issuing two or more denominations of digital currencies, based on the countries of the asset pool.
The method of this aspect may have any one or more features mentioned in respect of the digital currency unit and digital currency system of the first and second aspects of the invention.
In a fourth aspect, the invention broadly relates to a user application configured to be executable on an electronic user device for administering and facilitating transacting of digital currency units in a digital currency system, each digital currency unit comprising: asset data indicative of an asset pool linked to the digital currency unit; and reserve currency data indicative of a reserve currency linked to the digital currency unit, and wherein the user application comprises: a user interface configured to allow a user to transact the digital currency units within the digital currency system.
In an embodiment, the digital currency system is configured to administer and facilitate transacting of the digital currency units of the first aspect of the invention. The digital currency units may have any one or more of the features mentioned in respect of the first aspect of the invention. In an embodiment, the user application is configured to access and/or interact with the electronic control system of the second aspect of the invention. The user application accessing the electronic control system may have any one or more of the features mentioned in respect of the second aspect of the invention.
In one embodiment, the user application an application program installed on a user device. In another embodiment the user application is in the form of a website interface hosted by a website server and accessible via an internet browser of the user device.
In one embodiment, the digital currency system is configured to be accessible by the user application over a data network via the electronic user device. In one configuration, user application accesses the digital currency system via a cloud-based system that is accessible over a data network such as the internet.
In an embodiment, the user application is configured to enable the user to transact digital currency units on in any one or more of the following ways: purchased, sold, transferred, spent, loaned, held, invested, deposited. In an embodiment, the user application is configured to enable the user to view their balance of digital currency.
In an embodiment, digital currency units are purchasable via the user application using payment cards or a bank account linked to a fiat currency. In an embodiment, digital currency units are sold via the user application to other users for a corresponding value of fiat currency. In an embodiment, the user application is configured to allow digital currency units of one denomination to be traded for digital currency units of a different denomination. In an embodiment, the user application is configured to allow digital currency units to be used to purchase items.
In a fifth aspect, the invention broadly relates to a computer-readable medium having stored thereon computer executable instructions that, when executed on a processing device or devices, cause the processing device or devices to perform a method of any of the aspects of the invention above.
In a sixth aspect, the invention broadly relates to a set of application program interfaces embodied on a computer-readable medium for execution on a processing device in conjunction with an application program for executing a method of any of the aspects of the invention above. The first-sixth aspects of the invention may comprise or have any one or more features mentioned in respect of the other aspects of the invention.
Definitions or terms or phrases.
The phrase“real estate” as used in this specification and claims is intended to mean, unless the context suggests otherwise, any type of residential or commercial real estate, whether land, sections, and/or buildings or improvements.
The term“denomination” as used in this specification and claims in relation to digital currency is intended to mean, unless the context suggests otherwise, the type of digital currency signified by its digitally linked reserve currency, i.e. a digital currency unit tied to one reserve currency is a different denomination to a digital currency unit tied to a different reserve currency.
The phrase“digital currency” as used in this specification and claims is intended to mean, unless the context suggests otherwise, a virtual currency or virtual money in the sense that it is a digital representation of value and accepted as a medium of exchange in at least some environments or systems, and can be transferred, stored or traded electronically, but does not have the legal tender status of a fiat reserve currency for example.
The term‘comprising’ as used in this specification and claims means‘consisting at least in part of . When interpreting statements in this specification and claims which include the term‘comprising’, other features besides the features prefaced by this term in each statement can also be present. Related terms such as‘comprise’ and‘comprised’ are to be interpreted in a similar manner.
The phrase 'computer-readable medium' should be taken to include a single medium or multiple media. Examples of multiple media include a centralised or distributed database and/or associated caches. These multiple media store the one or more sets of computer executable instmctions. The phrase 'computer readable medium' should also be taken to include any medium that is capable of storing, encoding or carrying a set of instructions for execution by a processor of a computing device and that cause the processor to perform any one or more of the methods described herein. The computer-readable medium is also capable of storing, encoding or carrying data structures used by or associated with these sets of instructions. The phrase 'computer-readable medium' includes solid-state memories, optical media and magnetic media. Number Ranges
It is intended that reference to a range of numbers disclosed herein (for example, 1 to 10) also incorporates reference to all rational numbers within that range (for example, 1, 1.1, 2, 3, 3.9, 4, 5, 6, 6.5, 7, 8, 9 and 10) and also any range of rational numbers within that range (for example, 2 to 8, 1.5 to 5.5 and 3.1 to 4.7) and, therefore, all sub-ranges of all ranges expressly disclosed herein are hereby expressly disclosed. These are only examples of what is specifically intended and all possible combinations of numerical values between the lowest value and the highest value enumerated are to be considered to be expressly stated in this application in a similar manner.
As used herein the term‘(s)’ following a noun means the plural and/or singular form of that noun.
As used herein the term‘and/or’ means‘and’ or‘or’, or where the context allows both.
The invention consists in the foregoing and also envisages constructions of which the following gives examples only.
BRIEF DESCRIPTION OF THE DRAWINGS
Embodiments of the invention will now be described by way of example only and with reference to the accompanying drawings in which:
Figure 1 is a schematic overview of an electronic digital currency system configured for allowing users to transact in a digital currency backed by real estate in accordance with an embodiment; Figure 2 is a flow diagram of the process of acquiring real estate into a tranche, and creating units of digital currency linked in value to the value of the real estate tranche in accordance with an embodiment;
Figure 3 is a flow diagram of an exemplary process of the linking of the valuation of the tranche of real estate to the value of the digital currency and how a user might purchase units of digital currency in accordance with an embodiment;
Figure 4 shows an example of a user’s digital currency account with purchases made in different tranches, and the options available to the user in accordance with an embodiment;
Figure 5 shows a screen capture of the user application displaying the home screen in accordance with an embodiment;
Figure 6 shows a screen capture of the user application displaying the account creation screen in accordance with an embodiment; Figure 7 shows a screen capture of the user application displaying the account verification screen in accordance with an embodiment;
Figure 8 shows a screen capture of the user application displaying the digital currency details screen in accordance with an embodiment;
Figure 9 shows a screen capture of the user application displaying the land tranche details screen in accordance with an embodiment;
Figure 10 shows a screen capture of the user application displaying a list of the user’s previous transactions in accordance with an embodiment;
Figure 11 shows a screen capture of the user application displaying the digital currency options available to the user in accordance with an embodiment;
Figure 12 shows a screen capture of the user application displaying the digital currency purchase screen in accordance with an embodiment;
Figure 13 shows a screen capture of the user application displaying the digital currency payment screen in accordance with an embodiment;
Figure 14 shows a screen capture of the user application displaying the digital currency sale screen in accordance with an embodiment;
Figure 15 shows a screen capture of the user application displaying the digital currency trading screen in accordance with an embodiment;
Figure 16 shows a screen capture of the user application displaying the creation of a digital currency order screen in accordance with an embodiment; and
Figure 17 shows a screen capture of the user application displaying the digital currency hold screen.
DETAILED DESCRIPTION OF EXAMPLE EMBODIMENTS
In the following description, specific details are given to provide a thorough understanding of the embodiments. However, it will be understood by one of ordinary skill in the art that the embodiments may be practised without these specific details. For example, software modules, functions, circuits, etc., may be shown in block diagrams in order not to obscure the embodiments in unnecessary detail. In other instances, well-known modules, structures and techniques may not be shown in detail in order not to obscure the embodiments.
Also, it is noted that the embodiments may be described as a process that is depicted as a flowchart, a flow diagram, a structure diagram, or a block diagram. Although a flowchart may describe the operations as a sequential process, many of the operations can be performed in parallel or concurrently. In addition, the order of the operations may be rearranged. A process is terminated when its operations are completed. A process may correspond to a method, a function, a procedure, a subroutine, a subprogram, etc., in a computer program. When a process corresponds to a function, its termination corresponds to a return of the function to the calling function or a main function.
Aspects of the systems and methods described below may be operable on any type of general purpose computer system or computing device, including, but not limited to, a desktop, laptop, notebook, tablet, smart television, or mobile device. The term "mobile device" includes, but is not limited to, a wireless device, a mobile phone, a smart phone, a mobile communication device, a user communication device, personal digital assistant, mobile hand-held computer, a laptop computer, wearable electronic devices such as smart watches and head-mounted devices, an electronic book reader and reading devices capable of reading electronic contents and/or other types of mobile devices typically carried by individuals and/or having some form of communication capabilities (e.g., wireless, infrared, short-range radio, cellular etc.).
1. Asset-backed digital currency overview
This disclosure relates to a digital currency that is asset-backed and linked to a reserve currency. By way of example, in this embodiment to be described the asset backing the digital currency is real estate or land, whether residential and/or commercial real estate. However, it will be appreciated that alternative assets or asset-classes or a mixture of asset-classes may be used in alternative embodiments. In the following embodiment, the digital currency and trading system/platform will be described in the context of a real estate backed digital currency by way of example, although it will be appreciated that the system may be applied to other asset classes.
In the real estate digital currency embodiment, the digital currency and trading system/platform is configured to create liquidity in real estate or land, with the real estate backed digital currency being available for wide adoption and trading, just like the fiat currencies & the Global Forex (FX) Market, which is the largest, most liquid market in the world, with average traded values that can be trillions of dollars per day.
The real estate backed digital currency system also lends itself to the providing additional platforms such as, but not limited to, a bank-like platform that exclusively uses the real estate digital currency for FX trading, savings, term deposits or the like, where user’s you can buy, trade, hold, sell and spend their real estate backed digital currencies. In this embodiment, the real estate back digital currency may create wealth for users by making the trading of residential & commercial real estate globally easy with an end-to-end financial service using a secured closed centralised global platform that exclusively uses the real estate backed digital currency technology for services such as, but not limited to, savings, payments, FX, term deposits, loans, Pension & Super funds.
As will be explained in further detail, in this embodiment the real estate backed digital currency is secured and backed (for example by a ratio of 1 : 1 , although this ratio may be varied in alternative embodiments or configurations) by a pool of investment properties, such as residential & commercial real estate, packaged together into digital currencies that investors, traders, or users can buy, trade, spend, sell and hold.
By way of overview only, in some embodiments, the system or platform is configured such that every year (or some other selectable purchasing frequency or arbitrary timing), the administrators of the trading platform purchase "Land" residential & commercial real estate globally and hold the purchased real estate in trust to the value of the new digital currency created. The trading platform only increases supply of the digital currency (e.g.“digitally prints”) each year (or the relevant purchasing frequency or coincident with a real estate purchasing event if arbitrary) when an equal amount of residential & commercial property is purchased to back the digital currency (for example at a creation ratio of 1 : 1 , although this ratio may be selectively modified or varied depending on the embodiment or configuration) in the chosen reserve currency associated or linked with the real estate purchase. Investors or users may then, via the trading system or platform purchase the newly created digital currencies released.
By way of example only, the following actions or services may be provided by the trading platform for users of the real estate backed digital currency:
• Trade - the digital currencies may be traded on a peer-to-peer FX exchange platform in a plurality or multiple different‘country’ currencies supported by the platform,
• Buy - purchasers of the digital currency may simply store the currency in a platform savings account,
• Spend - the digital currency may be used to make in-person or online purchases via various traditional e-commerce or purchasing mechanisms or banking mechanisms, such as, but not limited to, a platform Debit Card or similar to enable transactions to be effected at online or in-store retailers or the like, in a range of different‘country’ currencies supported by the platform,
• Hold - purchasers of the digital currency may take a‘long position’ via a range of different fixed term (e.g. 5 and 10 year, or other selectable terms) platform digital currency term deposits, and/or
• Sell - purchasers of the digital currency may sell it for fiat currency at any time through the platform if they wish to liquidate their digital currency.
2, Trading System or platform overview
As explained above, this disclosure relates to an electronic or digital system or platform configured to allow trading of an asset-backed digital currency. The embodiment described particularly relates to a real estate or land-backed digital currency and associated trading system or platform. In this embodiment, the system comprises different modules which provide for a fully automated experience for a user, from account sign-up through to fulfilment of purchasing of real estate backed digital currency. Using the platform, a buyer or seller can participate in a multitude of virtually instantaneous transactions of units of the real-estate backed digital currency, in denominations across a range of different associated or linked fiat reserve currencies. As will be explained in further detail below, each unit of real estate backed digital currency is linked both to an asset pool (purchased and held in trust by the platform administrators) in the form of asset data and a fiat reserve currency in the form of reserve currency data, which is typically associated with the country in which the related tranche of real estate is purchased.
Referring to Figure 1, the digital currency system 100 is an electronic, digital, online control system or platform that is accessible by one or more users, typically subscribers or alternatively one-time or guest users. The digital currency system in this embodiment is an electronic control system for at least storing and maintaining data relating to the digital currency system. Users are able to access the digital currency system 100 to transact in various different ways with a real estate backed digital currency, and with reserve currencies, the information or data of which is stored in the system as would be appreciated by a skilled person. The digital currency system 100 may be accessible over a data network via any suitable software or device such as, but not limited to, an application program installed on a user device (e.g. smartphone or tablet or the like) or via a website interface on an internet browser on a device to access a website or cloud-based currency system that is accessible over a data network such as the internet.
As shown, in this embodiment the digital currency system 100 may be in the form of a server such as a cloud-based server, a website server, or other server which is accessible over a data network 102 such as the internet or similar by one or more users via electronic user devices such as those indicated at 104. In this embodiment, the electronic user devices 104 may be any form of an electronic device having a data network connection. The system may be accessible via a web browser or local application program on the electronic user device, for example with web browser capability including, but not limited to, a personal computer, laptop, desktop, tablet, smartphone, or any other suitable electronic device. As shown, such electronic user devices typically comprise a processor 106, memory 108, display 110, user interface 112 (e.g. touch screen, keyboard, mouse or the like), and data communication 114 for accessing a data network 102 such as the internet or for otherwise creating a data communication link with external electronic devices or systems such as the digital currency system 100.
In this embodiment, the digital currency system is hosted by a data server or servers. The server may, in this embodiment, comprise components such as a processor 120, memory 122, data communications module 124 and administrator interface 126 to enable an administrator to manage and control the digital currency website and data. In this embodiment, the digital currency system 100 may comprise an integrated database or databases 128 or one or more accessible remote databases that are in data communication with the digital currency system 100. The database or databases 128 may store data including, but not limited to, currency amounts, transactions performed, exchange rates, financial information, and user or subscriber data for example as will be appreciated by a skilled person. It will be appreciated that databases may store any required system and/or user data. The digital currency system in this embodiment stores transactional and other data relating to the digital currency units in the database or databases 128. In another embodiment, a decentralised mechanism is used to store transactional or other data relating to each digital currency unit. In one embodiment, the digital currency system 100 creates and maintains digital wallets for registered users, to enable registered users to transact with their digital currency units. The digital currency system maintains real-time electronic records of the digital currency account balances of registered users.
In this embodiment, the digital currency system 100 is in data communication with one or more financial management systems indicated at 130 and/or foreign exchange servers indicated at 136. In this embodiment, the digital currency system may be in data communication with one or more of the financial management systems 130 and/or foreign exchange servers 136 via a data communication network or networks such as, but not limited to, the internet as indicated at 132. In one configuration, the digital currency system 100 may interface or connect with one or more of the financial systems 130 or foreign exchange servers 136 via an application programming interface (API) or API interface as indicated at 134. The data communication link or data transmitted may be secured via encryption. In alternative configurations, the financial management systems and/or foreign exchange servers or systems, or aspects of these systems, may be modules of the digital currency system or integrated with the digital currency system.
In this embodiment the digital currency system is configured to receive periodic or real-time foreign- exchange data from the foreign exchange server 136. This foreign-exchange data relates to the reserve currencies associated with one or more denominations of digital currency. The digital currency system is in one embodiment configured to facilitate the trading of one denomination of digital currency for another denomination of digital currency based on the relevant foreign-exchange data of the associated reserve currencies. In one embodiment, the digital currency system may feature a conversion module or system for converting reserve currency into digital currency, and vice versa, based on a configurable conversion ratio. In this embodiment, the conversion ratio may be 1: 1.
In this embodiment, the digital currency system 100 is configured to receive asset pool valuation update data from the financial management system 130. In another embodiment, this asset pool valuation update data is provided from the database 128. The asset pool valuation update data relates to the or each asset pool which is linked to the digital currency units in circulation. In this embodiment the valuation update data is received periodically. In other configurations, the valuation update data is received arbitrarily, either on demand or otherwise.
In this embodiment, the digital currency system 100 is configured to update the value of the digital currency units in circulation in the system based on the received asset pool valuation update data. Each digital currency unit in circulation is digitally linked to the valuation data of its respective asset pool and its value updates automatically based on the current valuation data available from the digital currency system.
In this embodiment, the digital currency system 100 is configured to operate and provide the functionality of a digital currency or transacting system, specifically for administering and facilitating transacting of digital currency units. The digital currency system 100 is also configured to provide functionality for the creation and verification of users, their accounts, and the transactions performed on the system, as will be appreciated by a skilled person. However, as will be explained in further detail, the digital currency system 100 comprises additional functionality or capability that enables unique forms of currency management between different fiat currencies (reserve currencies), and units of a digital currency which are backed by or linked to real estate.
The digital currency backed by real estate will now be explained in more detail below. An example of the process flows for the various functionalities of the system, and how the digital currency plays a role in these will be also be explained in further detail. In particular, various aspects of the processes of the system, such as the creation and validation of a user account, and the sale and purchase of units of digital currency will be explained with reference to an example user application program configuration, having a user interface, by way of example only. It will be appreciated that other user application program configurations or interfaces may be used, and that the digital currency system may additionally or alternatively be accessed via a website interface accessible through a website browser that runs on the user device in which accesses remote database or server which stores user data and/or transaction and financial information for example. In this example, the digital currency system is provided as a cloud-based system as accessible by a user application program, but it will be appreciated that the same functionality may be delivered via a locally stored application program mnning on a user device or which is otherwise accessible via a user device.
In the embodiment described, the digital currency system is primarily implemented or executed by a centralised server or server systems under the control of an administrator. However, it will be appreciated that the entire system or at least aspects of the system may be implemented in a decentralised configuration, such as using blockchain technology or platforms or other decentralised systems.
3. Digital currency Overview
In this embodiment, a digital currency is provided which is tradable on the digital currency system. This digital currency can be transacted in many different ways on the digital currency system, for example it can be bought, sold, traded, and held by users of the system, and can also be transferred to other users of the system. The digital currency system in an embodiment relies on a digital currency which is tied to an asset class or classes. In this embodiment, the asset class is real estate. These real estate investments are preferably a combination of commercial and residential real estate, but may also be solely commercial or solely residential real estate. Real estate, both commercial and residential, is tangible, typically low-risk, and has a known or assessable or quantifiable (realisable) value which commonly steadily appreciates in the long-term. This makes real estate an ideal investment, and ideal for backing a digital currency.
A tangible asset such as real estate provides reduced volatility as opposed to existing digital currencies which are traditionally price volatile as they are not linked to real tangible assets. In this embodiment, the real estate backed digital currency provides an accessible mechanism for holders of the digital currency to benefit from all the positive aspects of increasing capital growth in residential and commercial real estate globally without the negative aspects commonly associated with real estate investment such as property management fees, legal and tax requirements, and liquidity issues.
The real estate investments associated with the digital currency in this embodiment are purchased and managed by a fund manager and held in a trust, although it will be appreciated that other legal structures or mechanisms could be employed. In one embodiment, the fund manager or managers create or start the digital currency into circulation based on an initial asset pool of purchased residential and commercial real estate. In one embodiment, the fund manager or managers then on a periodic basis purchase additional tranches of residential and/or commercial real estate to expand asset pool, and the additional value added to the asset pool then forms the basis for the periodic release of a new supply of digital currency available for purchase, i.e. released into circulation. It will be appreciated that in alternative embodiments, the frequency of expanding the asset pool need not necessarily be yearly, i.e. may be more or less frequent. In further alternative configurations the asset pool need not necessarily be changed on a time basis at a particular frequency, and may alternatively be changed arbitrarily or based on a different trigger metric, such as value for example. For example, the asset pool may be changed once sufficient additional real estate has been purchased that collectively reaches a predetermined collective value threshold, triggering its incorporation into the asset pool and the associated creation or formation of a new supply and issuance of digital currency. The asset pool may also be reduced in size if real estate is sold, either on a periodic or arbitrary basis. The asset pool may in this embodiment be of a dynamically changing size and valuation, thereby enabling control of the digital currency supply up or down. As previously noted, each digital currency unit created is tied to a specific asset pool and a reserve currency. The reserve currency selected for the newly created digital currency is typically the fiat reserve currency associated with the country where the real estate exists, or is the fiat reserve currency which was used to purchase the real estate. For example, if an asset pool from New Zealand is purchased in New Zealand dollars, then the new supply of digital currency offered would be tied or linked (backed) by that New Zealand asset pool, and also tied to the New Zealand dollar at the time of issuance of the digital currency. Typically, the newly created digital currency has an associated identifier identifying the associated fiat currency to which it is tied, and which signifies the country of the associated asset pool by which it is backed.
In alternative embodiments or configurations, it will be appreciated that the individual items or units of real estate in the asset pool need not be from the same country or a country associated with a fiat reserve currency used by the digital currency system. Additionally, it will be appreciated that the fiat reserve currency associated with the initial offering of a new supply of digital currency need not necessarily be associated or dictated based on the country of the asset pool backing the digital currency, but may be arbitrarily selected or decided based on other factors.
As previously noted, the purchased real estate of the or each asset pool is held in trust. In this, embodiment, the value of the purchased real estate in the asset pool or portfolio is equal to the value of the new digital currency created or offered into the system for purchase. In other words, the ratio of the value of the asset pool to the value of the digital currency created is 1:1, based on the fiat reserve currency at which the tranche of real estate was purchased. However, it will be appreciated that this ratio may be altered or varied in alternative configurations.
As noted above, in alternative embodiments, it will be appreciated that real estate might be purchased and newly created digital currency backed by that expanding asset pool may be released at an arbitrary time and need not be periodic.
It will be appreciated that the digital currency created may have a data structure storing various data elements or information. By way of example, each unit of digital currency may store asset data indicative of its associated or linked asset pool, which may include for example the initial and/or updated value of the asset pool. This asset data of each digital currency unit may identify or be linked to the respective asset pool for the digital currency unit. Each unit of digital currency may also store reserve currency data indicative of, or otherwise identifying, its associated fiat reserve currency. For example, a digital currency unit that is linked to a New Zealand asset pool will be digitally linked to the New Zealand dollar through the reserve currency data. In some embodiments, the digital currency units may also have a data stmcture that stores legal data indicative o f or creating a legal association between the digital currency unit and its respective asset pool, or between the digital currency unit and the user who holds or owns the digital currency unit. The legal data may comprise data indicative of or linking to information describing or identifying the legal, trust, or contractual structures, mechanisms and/or instruments linking the digital currency unit to its respective asset pool or owner.
As will be appreciated, the digital currency units may also have a data structure that stores additional information depending on the implementation of the currency trading system. Such data may include, but is not limited to, data identifying the current holder or owner of the digital currency unit, data indicative of past trades or transactions of that unit of currency, or other relevant information relevant to the currency system administration. It will be appreciated that in some embodiments, aspects of the data structure or elements or portions of the information may be encrypted or otherwise hidden for privacy reasons and/or accessible only by particular administrators or users, and the data structure may be configured to dynamically update information access rights associated with a unit of the digital currency depending on various variables or transactions. Each digital currency unit may further comprise a unique identification code or unique identifier which can be used to distinguish and identify each separate digital currency unit in circulation in the digital currency system.
As noted above, in this embodiment, each representative unit of digital currency is preferably tied to a reserve currency upon creation at, by way of example only, a ratio of 1 unit of digital currency to 1 unit of reserve currency. This allows the digital currency to be traded in the same or a similar way as a reserve currency and the global foreign exchange market. It will be appreciated that the ratio linking the digital currency to the reserve currency may be varied, for example may be based on the specific reserve currency, the foreign exchange rate or on the performance of the specific asset pool.
As will be appreciated, each digital currency unit may be sub-divided or transacted with in sub-units. Each digital currency sub-unit is a fractional value of the total digital currency unit. For example, one digital currency unit might be divided into one hundred sub-units. This enables transactions to occur in smaller values. This can be useful when, for example, the value of one digital currency unit increases to a level which prevents certain users from purchasing. By sub-dividing a unit of digital currency, the user can purchase a smaller fraction of the digital currency unit. The data of the digital currency unit may be passed onto or inherited by the subunits. In an embodiment, the extent of fractional sub-units may be defined by a fractional limit, such as a specified number of decimal places, or may be configured to mirror the fractional sub-units of the digitally linked reserve currency.
Tranches of real estate
In this embodiment, real estate is purchased, and is grouped or packaged into an asset pool periodically, say each year or at some other desired frequency (or as mentioned the tranches of real estate may be formed arbitrarily based on other non-time-based triggers and added to the asset pool in alternative configurations). New digital currency is then created in the digital currency system each year to an equal value of the assets purchased by the fund manager. In this way, an equal amount of residential and commercial real estate is preferably purchased to back the digital currency at a 1 : 1 ratio with the reserve currency. The digital currency is preferably permanently digitally linked through storage in data elements of the database and in the digital currency system to the respective asset pool. In this embodiment, the asset pools are preferably grouped by country, and each new digital currency supply created is linked to its asset pool and to the fiat reserve currency associated with the country of the asset. The newly created digital currency is then priced at a 1: 1 ratio with the fiat reserve currency for purchase.
Referring to Figure 2, the general process or main steps in the creation and/or storage of new digital currency linked to an asset pool using the digital currency system 100 will be described.
In this embodiment, the general process 200 starts as indicated at 201 with a fund manager or administrator of the digital currency system purchasing assets in one or more countries using reserve currency. Once a predetermined amount of reserve currency has been spent, or optionally a predetermined level of assets have been acquired at step 201, the purchased tranche of individual assets are pooled into an asset pool at step 202. Physically there is no change to the assets. The creation of an asset pool at step 202 is simply to enable the digital currency system to be linked to the group of real estate assets. As will be appreciated, the first tranche of real estate purchased forms the initial asset pool and issuance of digital currency supply. Subsequent tranches of real estate, whether purchased periodically (e.g. yearly or otherwise), then add to or expand the asset pool and enable the creation and periodic or arbitrary realise of additional tranches of digital currency as the asset pool expands. The value of the new tranche of digital currency made available for circulation is equal to the value of new tranche of real estate added to the asset pool. Likewise, real estate may be sold from the asset pool to reduce the size and value of the asset pool, which reduces the supply of digital currency supply in circulation.
Once a tranche of bundled real estate assets has been created at step 202, the value of the tranche as a total in terms of reserve currency is determined at step 203. An identity of the tranche of bundled real estate assets is then stored in a data structure in the digital currency system in correspondence to the valuations of the tranche. In a preferred embodiment the tranche is then divided into a predetermined number of units of digital currency in step 204, which are able to be released or offered on the digital currency system to users to purchase and trade. In this embodiment, the predetermined number of units of digital currency created at a 1 : 1 equivalent ratio to the total valuation of the trance determined at step 203.
In this embodiment, at step 204, a digital token is created for each unit of digital currency. The unit of digital currency preferably links at a 1 : 1 ratio with a unit of the selected reserve currency, which in this embodiment is configured to be the fiat currency used to purchase the associated real estate tranche. These digital tokens can be stored and tracked using the digital currency system and traded as the digital currency. In another embodiment, the digital currency system utilises a distributed ledger to track and store information relating to the digital tokens and all user transactions that occur with the digital tokens. As would be appreciated by a skilled person, this distributed ledger may be for example using blockchain or other similar technology as utilised currently by a number of digital cryptography-based currencies.
In this embodiment, a new tranche of digital currency is created only when an equal value of a tranche of real estate assets are purchased to back the digital currency (for example at the 1 : 1 ratio) in the representative or linked reserve currency. As noted above, new tranches of real estate are purchased on a periodic basis, such as yearly or some other frequency. In another embodiment, real estate is purchased continuously or on an arbitrary basis and is bundled into a tranche of real estate on a periodic basis.
Foreign exchange module and trading
In this embodiment, the digital currency system may work across multiple countries in that assets may be purchased across multiple countries, thereby creating multiple digital currencies linked with a range of different fiat reserve currencies, i.e. different denominations of digital currency. For example, if the digital currency system operated based on asset purchases across New Zealand, Australia, Great Britain, and the U SA, then four different digital currency types would be available, each linked and priced by one of the fiat reserve currencies of these countries. A purchaser or owner of New Zealand digital currency would effectively be purchasing digital currency in New Zealand dollars with the knowledge that the digital currency units are backed or linked to a New Zealand asset pool, and a purchaser of Australia digital currency would purchase the digital currency in Australia dollars with the knowledge that the digital currency units are backed or linked to Australian asset pool. Linking the digital currency to a asset pool and the reserve currency associated with the country of the asset pool, and offering multiple different country-linked digital currencies enables users of the system to trade or convert digital currency of one country to that of another country in the system. As the digital currencies are created at a 1 : 1 ratio to the reserve currency, the conventional FX rates of the day can be utilized to facilitate the trade of say New Zealand digital currency into Australian digital currency. When engaging in a foreign exchange transaction of this nature, the user is in effect trading units of New Zealand real-estate for units of Australian real-estate. Therefore, the system creates a mechanism for transacting in real estate across multiple countries in high volumes in small or large transactions.
In this embodiment, the digital currency allows a user to operate or transact in a number of different digital reserve currencies easily. A user of the digital currency system is able to perform transactions such as the purchasing and selling units of digital currency in a range of reserve currencies, depending on those reserve currencies supported by the system. The digital currency of selection can preferably be different for each separate transaction, as will be described further later. As noted above, each representative unit of digital currency is tied to a specific reserve currency at its formation/creation, preferably at a 1 : 1 ratio. This allows the digital currency to be traded in the same way as a conventional fiat reserve currency on the global foreign exchange market. The currency is therefore able to fluidly be converted into a number of different representative reserve currencies in real time, without the need for financial market systems and/or foreign exchange markets.
In this embodiment, each digital currency unit is linked to a specific reserve currency, and can then be traded freely on the digital currency system into digital currencies backed by a different reserve currency. This functionality is enabled by the digital currency system being operatively connected or in data communication with the foreign exchange server 136, which allows the digital currency system to receive real-time foreign exchange rate data relating to the range of reserve currencies utilized in the digital currency system. The connection with the foreign exchange server 136 allows up to date FX exchange rates between different reserve currencies to be applied and used in the system. By way of example only, in this embodiment the representative reserve currencies available to a user to transact with using the digital currency system include the following denominations: the Australian dollar (AUD), the New Zealand dollar (NZD), the US dollar (USD), the Canadian dollar (CAD), the British pound (GBP), the European Euro (EUR), the Hong Kong dollar (HKD), and the Japanese Yen (JPY). But optionally the digital currency system will also include other reserve currencies or digital or cyrpto currencies commonly traded .
In alternative embodiments, it will be appreciated that the system may operate based on a single reserve currency if desired without the foreign-exchange module such that users simply buy and sell digital currency in one particular type of reserve currency. The digital currency system or systems therefore may operate in one or multiple countries independent of each other. For a user to purchase digital currency, they must possess the required value of the associated reserve currency linked to that digital currency. For example, if a user is based in New Zealand, and they wish to purchase USA digital currency, they must convert their NZ dollars into USA dollars and then make the purchase of USA digital currency. However, if the foreign-exchange module as noted above is operative, then a user could simply purchase NZ digital currency in NZ dollars or use existing NZ digital currency funds to purchase USA digital currency via the foreign-exchange module, without having to use the conventional FX market process to convert the fiat currency.
Digital currency unit distribution
In this embodiment, the asset pool can be represented by digital currency units which can be traded as digital currency using the digital currency system as described. These units enable users to transact with the system, as will be described later.
For example, transactions of the digital currency can be authenticated and recorded using the digital currency system. As noted above, in such a system, user transactions are typically recorded on a database, which may be central or distributed.
In other embodiments or configurations user transactions are recorded on ledgers in various peer to peer devices of the system, for example using blockchain technology. In this embodiment, the transactions are recoded as blocks that are verified through a consensus mechanism, such as a“proof of work” mechanism that requires parties to solve a resource intensive cryptographic hashing process in exchange for remuneration in cryptographic currency.
As previously noted, the digital currency system administers a single supply of digital currency units associated with a single asset pool. In other embodiments, the digital currency system can administer two or more supply of digital currency units concurrently, each supply of digital currency units being linked to a respective different asset pool. As noted, the size of the asset pool backing each digital currency supply may be altered, e.g. expanded or increased on a periodic or arbitrary basis with an additional tranche of purchased real estate, to enable the creation of a new tranche of digital currency supply associated with the expanded asset pool backing the digital currency. The digital currency system releases into circulation or for purchase in the system a new supply of digital currency units on a periodic basis, such as yearly or some other frequency. In another embodiment, a new supply of digital currency units is released into circulation or for purchase in the system on an arbitrary basis.
In one embodiment, the electronic control system is configured to administer a single denomination of digital currency associated with one type of reserve currency. For example, the system may operate with respect to a single reserve currency, such as that associated with a selected country. In such embodiments, the asset pool linked to the digital currency are located in that same selected country. In another embodiment, the electronic control system is configured to administer two or more denominations of digital currency associated with two or more types of reserve currencies. For example, the system may operate with respect to two or more reserve currencies associated with two or more countries. In such embodiments, the respective asset pools linked to the different denominations of digital currency will be located within those two or more countries.
Value fluctuation of digital currency
The value of the digital currency units once created relative to its linked reserve currency is dictated by the value of the associated asset pool to which it is linked. If the value of the asset pool increases, so will the value of the digital currency units in a proportional manner, and if the value of the asset pool decreases, so will the value of the digital currency units. By way of example, in this embodiment if the value of the asset pool increases by 10 %, then the supply & value of the associated digital currency units will also increase by 10%. By way of further example, if the value of the asset pool decreases by 5%, then the supply & value of the associated digital currency units will decrease by 5%.
In this embodiment, the asset pool may be re-valued at a predetermined frequency, such as quarterly or some other desired frequency. The updated value information associated with each asset pool is then loaded into the digital currency system, which then flows through to update the supply & value of the digital currency units associated or linked with the asset pool. As will be appreciated, the value of each asset pool will change differently, and therefore so will the different associated digital currency units at each of these quarterly value update events.
As will be appreciated, if the foreign exchange module is operational, the value of each type of digital currency of one reserve currency relative to the digital currency of another reserve currency will depend on the current FX exchange rates associated with those reserve currencies. So, in effect, the purchasing power of a user wishing to purchase digital currency of a different denomination, for example purchasing USA digital currency with New Zealand digital currency, is dictated both by the New Zealand asset pool associated with the New Zealand digital currency as at the most recent valuation event and the current NZD-to-USD FX rate.
In this embodiment, users of the digital currency system may selectively view the value of their digital currency in‘land’ or‘real estate’ mode, in which the value will update or change for example quarterly (or other system real-estate re-valuation frequency). The user may also view the value of their digital currency in‘currency’ mode in which the value of a digital currency of one country is shown or expressed in one or more other digital currencies of other countries having different reserve currencies, with the system calculating these values based on live FX rates associated with those reserve currencies from the global FX market data. For example, a user holding NZ digital currency may view the value of that holding expressed in terms of Australian, USA, and Great Britain digital currencies, so they can evaluate whether they wish to engage in trading into one or more of these alternative digital currencies associated with another country, which is in effect trading real estate from one country with real estate of another country.
Figure 3 shows an exemplary process 300 of an embodiment showing the linking of the valuation of an asset pool to the value of newly formed or created digital currency at a representative reserve currency and how a user might purchase units of the digital currency. Firstly, an asset pool purchased previously by a fund manager is valued at $100,000,000 in New Zealand Dollars (NZD) at step 301.
At step 302, the asset pool is valued at a ratio of 1 : 1 to the newly created digital currency based on the linked reserve currency. Therefore, units of digital currency with a value in representative reserve currency equivalent to the $100,000,000 NZD valuation of the asset pool is created on the digital currency system. This preferably creates a pool of digital currency units at step 303 of value equivalent to $100,000,000 in NZD, but in digital currency, so $100,000,000 NZDC (New Zealand digital currency) is created in the digital currency system. The value of each NZDC unit of digital currency in representative reserve currency is linked at a 1:1 ratio to the proportion of the value of the asset pool to which it is linked.
A number of different transactions are able to be completed using units of the digital currency as a medium for exchange. In one embodiment these include, but are not limited to: buy, sell, trade, hold, spend, pay, and loan. Examples of typical transactions that can be performed by a user using the digital currency system will now be described. In this embodiment, the details of each transaction performed are stored in the digital currency system, for example in the database.
Buy units of digital currency
A user wishing to purchase digital currency using the digital currency system is able to do so in the reserve currency linked to the asset pool, the NZD at a 1:1 ratio, as per step 304. For example, a user may wish to purchase $10,000 NZD worth of digital currency. This would purchase them units of digital currency equivalent to $10,000 of the representative reserve currency, NZD, which would be added to their account and stored in the digital currency system, allowing them to keep their digital currency as an investment, or to perform other transactions using the digital currency system. For example, after purchase, the user would hold $10,000 NZDC.
In this embodiment, a user is also able to purchase digital currency using the digital currency system in a different reserve currency than that linked to the desired digital currency being purchased. The user is able to purchase units of digital currency using a foreign currency, which will be converted to reserve currency linked to the digital currency at the current fiat reserve currency exchange rate. Using the example in Figure 3, the amount of foreign currency at the current exchange rate will purchase the user the equivalent amount of digital currency in NZD at a 1:1 ratio with the value of the asset pool, as per step 305. For example, a user may wish to purchase $10,000 AUD worth of New Zealand digital currency (NZDC) at the current exchange rate of $1 AUD to $1.09 NZ D. This would purchase them units of New Zealand digital currency equivalent to $10868.8 4 NZDC, which would be added to their account and stored in the digital currency system, allowing them to keep their digital currency as an investment, or to perform other transactions using the digital currency system, as above.
Example use of system to transact using digital currency
Figure 4 is an example of how a user might interact with the digital currency system, and the different transactions they might perform. The flow diagram 400 shows the inputs to the user’s account balance, and the possible outputs from it.
In this embodiment, the current account balance of the user is displayed at 430. This is made up of a number of different purchases of New Zealand digital currency (NZDC) from a number of different yearly tranches of newly created digital currency. For example, the user may have purchased digital currency units at each yearly release, as the asset pool linked to the digital currency is increased by the purchase of a new tranche of real estate. By way of example, the different yearly tranche pools having an undisclosed value are shown, with year 2015 at 401, 2016 at 402, 2017 at 403, and 2018 at 404. The user has purchased $10,000 NZD worth of each of these tranches in digital currency in each of the years the tranches were available as shown, through the digital currency system, at 410, 412, 414, and 416. Due to increases in the value of the real estate assets (e.g. capital gain) in the asset pool over time, and earnings from the investment/holdings in the asset pool such as rent, the value of each tranche of digital currency purchased has increased by a different amount. The $10,000 NZD worth of digital currency bought in the 2015 tranche is now worth the equivalent of $15,000 NZD, as shown at step 420. The value of the other tranches has also increased, as shown at 422 and 424, apart from the most recent tranche, which has not, at 426. The total current value of the digital currency owned by the user is therefore the accumulated value of the collective tranches of digital currency, shown at 430 as $49,000 equivalent to NZD. As noted previously, the conversion ratio of NZD to NZDC remains 1: 1 throughout the life of the digital currency units. As will be appreciated, Figure 4 simply demonstrates how the value of the digital currency changes value over time as the linked asset pool is re-valued. In this embodiment, the digital currency units are all the same in the sense of being linked to the same asset pool, regardless of which tranche they were purchased in. In other words, the ongoing value of the digital currency unit is tied to the underlying value of the total asset pool.
In the preferred embodiment, the user has several transacting options that they are able to use their account balance 430 on. They are able to purchase more digital currency, as explained in the example above, to increase their digital currency account balance . They are also able to sell, spend, trade, hold, pay, and perform loans with their balance of digital currency, as will be explained below, and with reference to the example in Figure 4. Other types of transactions utilising the digital currency are imagined, as appreciated by a skilled person.
Sell
The user is preferably able to sell all or a portion of their units of digital currency, as per 440. The units of digital currency are able to be sold back to the digital currency system, wherein they can be redistributed to other users wishing to purchase units. In an alternate embodiment, these units of digital currency are able to be sold directly to other users of the digital currency system in a peer-to-peer trading platform or mechanism. When a user sells some or all of their units of digital currency, the process of which will be described in more detail later with regard to the user application, the digital currency is converted back to the reserve currency it is linked to at a 1:1 ratio, and is redistributed to the user as that reserve currency by the digital currency system, as per step 450.
Trade ( FX )
In this embodiment, a user is also able to trade some or all of their digital currency units account 430 with other users of the digital currency system for units of digital currency linked to different representative reserve currencies, as per step 444. A user is preferably able to trade units of digital currency linked to one reserve currency, for example NZD, with another user or users for units of the digital currency linked to another digital currency, for example AUD, at step 454. This is preferably done at the current or live foreign exchange rate, as received from the foreign exchange server 136. The process relating to how a user is able to perform this transaction with respect to the user application is described later.
Pay
A user is preferably able to send some or all of the units of digital currency in their account to other users registered to the system, as per step 442. The units of digital currency will be removed from the users account and transferred to the account of the user they requested to send to by the digital currency system, as seen in step 452. Optionally, users are able to send units of digital currency to persons who are not registered on the system, in which case they will be sent an SMS or email alerting them that the user of the system wants to send them units of the digital currency, and will prompt them to register for the system in order to receive these units of digital currency. In an embodiment, digital currency units held by a user can be accessed and spent via payment cards, such as a plastic payment card or debit card which is linked via the digital currency system.
Hold
A user is also able to hold a long position in the digital currency, with a fixed term deposit at a fixed interest rate using some or all of a user’ s units of digital currency. The user is able to select the length of time the term deposit is for, which will have an associated respective interest rate for the investment period. The user will be able to see an expected amount of digital currency in the representative reserve currency the user will receive at the end of the fixed period.
Transaction validation
In this embodiment, as part of the registration process, the user provides credit and/or debit card information, some of which (such as the last 4 digits of the credit/debit card and the expiration date) is stored in a secure searchable database within the digital currency system and associated with the user. As a further security measure, the user-provided credit/debit card information can be triangulated with information from third parties, such as with the user's IP address, to determine if any particular transaction will be permitted on the digital currency system.
4, User application
In this embodiment, a user preferably accesses the digital currency system 100 via an electronic device, which is preferably a user application program (e.g. a smartphone or tablet application) as will be described further. Additionally, or alternatively, the user accesses the digital currency system through an internet browser on their internet device which they access the website or website interface that hosts the digital currency system. As will be appreciated, the digital currency user application presents pages or a graphical user interface (GUI) which enables a user to perform transactions and view data pertaining to the digital currency.
An exemplary embodiment of the user application will now be described with reference to Figures 5- 17, which are screen captures of the user application. In this embodiment, the user application is provided as a smartphone or a tablet device application which can be downloaded from an app market such as Apple iTunes store or Google App store. In another configuration, the user application may be provided as a web-based program or software that can be downloaded and installed on a laptop or a conventional desktop computer, or may be accessible through a website or web application.
Account creation
With reference to Figure 6, the user application first enables a user to register to use the system and purchase the digital currency. The account creation screen 600 allows a potential user to enter their information such as name, email, password and reserve currency. This information is then provided to the digital currency system wherein a potential user can be verified and an account created. The user account including all information provided, including their verification information can be stored as a data element or elements in the database of the digital currency system.
In this embodiment, in order for the potential user to successfully create a user account they must first verify themselves. In this embodiment, as shown in Figure 7, the user is presented with user verification screen 700. This screen allows for the manual provision of documents by the potential user to the platform, in order to verify their identity. Such documents could be any one of an identification card, driver’s license or passport. In some configurations, security mechanisms are used that are interfaced with the system in order to determine whether or not a particular potential user should be allowed to do business with the system under acceptable financial trading standards. In some configurations, the user must pass security checks and compliance checks before he/she can register with the platform, such as those checks which are compliant with governmental anti-fraud and money laundering measures.
If the potential user passes security checks, he/she is permitted to access the platform and seek registration. The platform acquires user-submitted information such as name, email address and password. In one embodiment, this information is submitted to a third party which runs a verification check and determines whether the user meets qualifications that have been predetermined. In one embodiment, the platform runs the verification check based on the user provided information to determine whether the user meets predetermined qualifications.
In one embodiment, upon successful account creation the user is assigned a user identifier by the digital currency system which is used to keep track of the transactions made by the user. This user identifier is preferably anonymised preventing the true identity of the user to be disclosed. In another embodiment, the user identifier may be set by the user, so they can transact using the system under their name or a pseudonym if they so wish. In another form, the digital currency system may query the user device for the associated IP address of the user device. This can also be stored alongside the user information provided by the user in the digital currency system. The IP address of the user device can be used for verification of the user in the future, and can be used to determine the geographical location of the user device.
Once a user has a user identifier and a user account, they are able to sign in to the application and access the remainder of the user application as required to purchase and trade digital currency. Further examples of the different transactions available through and abilities of the user application will now be described.
Currency information screens
Figures 5, 8 and 9 each shows a screen capture of the user application displaying examples of FX currency data to the user in an exemplary embodiment.
Figure 5 in this embodiment is the home screen 500 displayed to the user upon initial access of the user application. It provides the user with access to the main areas of the digital currency platform. The user is able to view their current balance of digital currency 503, and the user is able to choose which representative currency this is shown in using the toggle 501. The current foreign exchange rate provided from the foreign exchange server between a first selected representative currency chosen by the user using 501 and another representative reserve currency is shown at 505. A graph showing the exchange rate variation over a period of time is further shown at 507. This exchange rate variation data is provided from the foreign exchange server or is alternatively stored in the digital currency system database. A user is able to swipe through different representative currencies in order to view the current exchange rate and variation in exchange rate compared to the selected representative currency. The user is also able to view their current balance of digital currency in a number of other representative currencies as previously described. As shown at 509, the user may hold digital currency units in one or more different reserve currencies. In this example, the user holds Australian digital currency units (AUDC), USA digital currency units (USDC), and New Zealand digital currency units (NZDC).
Referring now to Figure 8, which shows a screen capture of an example currency display screen
800, accessed through the home screen. The currency details screen 800 shows similar information to the home screen, with the first representative currency for comparison able to be selected at
801, and the second representative currency preferably selectable by scrolling through at 803. Comparing different currencies will show the different representative current exchange rates provided preferably by the foreign exchange server at 805. Similarly, to the graph 501, graph 801 shows the exchange rate variation for the two selected currencies over a period of time. Fluctuations in the exchange rate are also shown at 809. As previously noted, the user can switch between‘currency’ mode view 811 and‘land’ mode view 813 to view the valuation fluctuations associated with their digital currency holdings relative to other digital currencies from an FX trade viewpoint or the value fluctuations of the associated asset pool associated with their digital currency units.
Figure 9 shows a screen capture of an example‘land’ mode view or asset pool display screen 900, accessed through the toggle button 811,813 from the digital currency screen 800. The total current valuation of the asset pool associated with the digital currency units held by the user is shown preferably at 905. The valuation of the asset pool shown at 905 is preferably shown in the representative currency as selected at 901. A graph 907 displaying the variation in total value of the asset pool in the selected representative currency over a period of time is also shown. This graph will vary at each valuation event of each asset pool, for example as the underlying value of the asset pool increases or decreases over time, as evaluated at the period valuation events. This variation in total valuation of the asset pool or asset pools is also displayed at 909 as a percentage change. It will be appreciated that the data required to formulate such graphs and figures will be stored in the database of the digital currency system.
Figure 10 refers to a screen capture of an example transactions screen 1000, accessed through the home screen. This screen 1000 displays a list of the transactions the user logged in to the system through the user application has made using the digital currency system. These transactions can include for example: buying digital currency, selling digital currency, trading digital currency, ordering digital currency, and holding digital currency. These transactions may be sorted chronologically and grouped by which date they were performed in one embodiment. The transaction list or data displayed may include historic or completed transactions as well as pending or draft transactions, and the transaction list displayed can be filtered using filter interface 1001 if desired.
Referring to Figure 11, which shows a screen capture of an example action screen 1100, accessed through the home screen. The action screen 1100 provides the user of the application with a variety of transactions available through the use of the digital currency system. Clicking on any one of the icons for the transaction icons will preferably take the user to the screen which enables them to complete said transaction. A number of transaction icons are provided, such as buy 1101, pay 1103, sell 1105, trade 1107, spend 1109, and hold 1111. Each of these will be described further in more detail below.
Figure 12 shows a screen capture of an example buy screen 1200, accessed by selecting the buy icon 1101 from the action screen 1100. The buy screen allows a user to purchase units of the real estate backed digital currency as previously described, specifically relating to the examples provided in Figures 3 and 4. A user preferably is able to select how they wish to purchase units of the digital currency through the selection menu at 1201. In this embodiment the option to purchase by hank transfer is shown, though in other embodiments purchase of units of digital currency can be made through credit card, debit card, or by using other digital currencies such as for example bitcoin. The user is also presented with the option to choose which denomination of digital currency they wish to purchase, the denomination being defined by the linked reserve currency. As shown at 1203 the user has selected to purchase digital currency linked to the Australian dollar reserve currency, i.e. Australian digital currency units. The amount of reserve currency the user wishes to spend purchasing units of digital currency is entered by the user at 1205. The conversion or exchange ratio between the reserve currency and the digital currency is preferably presented at 1207, and as previously mentioned in this embodiment the ratio is 1:1. The user is then shown the amount of digital currency they will be receiving following the purchase at 1209. The user can then proceed with the purchase, with money being deducted from the bank account, provided sufficient funds, as will be appreciated. The user will then be issued with the nominated number of units of digital currency by the digital currency system. The units of digital currency can be used elsewhere in the user application to perform other transactions, or can simply be held as an investment.
Referring to Figure 13 now, which shows a screen capture of an example pay screen 1300, accessed by selecting the pay icon 1103 from the action screen 1100. The pay screen 1300 preferably allows the user to send units of digital currency to other users registered to the system. The user is prompted at 1301 to enter the details of the other user they want to pay in digital currency. The user’s balance of digital currency in the selected representative currency is shown at 1303. The user selects the denomination of digital currency they wish to pay or transfer at 1305 and the amount in representative digital currency to pay at 1307 to send to the other user. So long as the amount the user wants to send 1307 is less than their current balance 1303, then the user is able to do so. The units of digital currency will be removed from the users account and transferred to the user they requested to send to 1301 account by the digital currency system. The digital currency system will update the balances of both the user’s digital currency accounts. Optionally, users are able to send units of digital currency to persons who are not registered on the system, in which case they will be sent an SMS or email alerting them that the user of the system wants to send them units of the digital currency, and will prompt them to register for the system in order to receive these units of digital currency.
Figure 14 shows a screen capture of an example sell screen 1400, accessed by selecting the sell icon 1101 from the action screen 1100. The sell screen allows a user to sell units of the real estate backed digital currency and receive the converted amount in the associated representative reserve currency linked to the digital currency units being sold. A user preferably is able to select how they wish to receive the reserve currency from the selection menu at 1401. In this embodiment the option to receive reserve currency by bank transfer is shown, though in other embodiments reserve currency can be received via credit card, debit card, or by using other digital currencies such as for example bitcoin. The user is also presented with the option to choose which denomination of digital currency they wish to sell using the menu at 1405 (assuming the user holds multiple different denominations of digital currencies). The amount of digital currency units of the selected denomination the user wishes to sell is entered by the user at 1407, wherein the user’s balance of digital currency in the representative currency is shown at 1403. The exchange rate between the digital currency and the reserve currency is presented at 1409, and as previously mentioned in this embodiment is a ratio of 1:1. The user is then shown the amount of reserve currency they will be receiving following the sale at 1411. The user can then proceed with the sale, with the amount of digital currency being deducted from their digital currency account balance in the digital currency system. The user will then receive in their bank account or other nominated payment option, the amount of representative reserve currency by the digital currency system.
Figure 15 shows a screen capture of an example trade viewing screen 1500, accessed by selecting the trade icon 1107 from the action screen 1100. The trade viewing screen 1500 allows the user to view trades 1501 posted by other users in the system using the create order function which will be described in further detail below. In this example, the user is trading 568AUDC for NZDC, which at current FX rates converts to 729NZDC. The user is able to view trades wherein another user wishes to trade a certain amount of digital currency in a first representative currency (i.e. digital currency of one denomination) for the equivalent amount in a second representative currency (i.e. a digital currency of another denomination). The equivalent amount is calculated by using the current foreign exchange rate between the first and second representative currencies associated with the two denominations, as provided by the foreign exchange server. The user can also accept one or more of these trades 1501 if they wish to convert their digital currency in one representative reserve currency to that of another representative reserve currency. The user is able to do this by selecting the buy option beside the trade they wish to accept. This process will be described in further detail below.
Figure 16 shows a screen capture of an example create order screen 1600, accessed by selecting the plus symbol 1503 from the trade viewing screen 1500. The current foreign exchange rate received from the foreign exchange server between the two selected representative reserve currencies 1602 and 1604 is shown at 1605. The amount entered by the user that they want to sell, or trade, at 1603 is converted from the first representative digital currency 1602 to the second representative currency 1604, and is shown as the amount that will be bought or received at 1607. Once an order is placed it will be shown on the trade viewing screen, an example of which is seen in Figure 15. When another user accepts the trade created by the user using the screen 1600, provided they have a sufficient amount in their digital currency account, then the trade will go ahead, as explained above. The digital currency sold in the first representative currency 1602, of amount signalled at 1603 will be removed from the user who created the orders account balance, and the same amount and transferred to the user who accepted the orders account balance. Similarly, the digital currency traded to the user who created the order will be in the second representative currency 1604, of amount signalled at 1607, which will be transferred to the user who created the order, and will be removed from the user who accepted the orders account balance.
This ability to trade digital currency in different representative currencies therefore allows the user to select the reserve currency to then be sold, or used to pay someone, since this is done within the digital currency system with units of digital currency, and not through reserve currency and a foreign exchange market, the user does not pay currency conversion fees, while also allowing payments to be made worldwide.
Figure 17 shows a screen capture of an example hold screen 1700, accessed by selecting the hold icon 1111 from the action screen. In this embodiment this transaction screen gives the user the ability to hold a long position in the digital currency, with a fixed term deposit at a fixed interest rate. The user’s balance of the digital currency is displayed at 1701. The user is able to select the digital currency units that they wish to deposit from the drop-down list provided at 1703, and input the amount of the digital currency at the representative reserve currency at 1705. The user is then able to select the length of time the term deposit is for at 1707, which will then show the respective interest rate at 1709 for the investment period, and the expected amount of digital currency in the representative reserve currency the user will receive at the end of the fixed period at 1711. In some configurations, a verification step can optionally follow any of the above transaction screens. Verification may occur for all transactions, such as purchases, or for transactions over a certain threshold, which can be set by the user and stored with the user data in the database of the digital currency system as will be appreciated. The verification step preferably involved authentication of the user through sending a randomized code to the user’s mobile device as an SMS, or optionally by sending an email with a similar code or a verification link to follow. The code can then preferably be entered into the user application at verification stage, wherein correct entry of the verification code will cause the transaction to proceed and be actioned by the digital currency system.
5, Summary
The digital currency and digital currency system effectively provides a real estate investment platform which in some embodiments reduces or eliminates the problems associated with traditional foreign exchange, digital currencies, and real estate and real estate portfolio investment. In some embodiments, the digital currency system, in accordance with the various embodiments disclosed can provide increased liquidity, less reliance on foreign exchange rates, lower risk, and lower barriers to entry associated with traditional digital currency and real estate investment.
The digital currency system allows for the structuring of land or real estate into currencies to allow real estate to be traded in high volumes in small & large transactions globally creating a liquid market by pricing it against its reserve currency, and this enables land or real estate to be traded shadowing the global FX market.
The digital currency system if structured and configured such that when a user trades say US digital currency (USDC) for New Zealand digital currency (NZDC), the user is not just trading foreign currency or digital currency, but rather the user is in effect trading land or real estate in the United States for land or real estate in New Zealand.
The digital currency system uses land or real estate backed digital currencies structured in asset pools and creates digital currency priced in its reserve currency. This system enables land or real estate to be transacted in high volumes in small & large transactions. The system also lends itself to use of the digital currency in various conventional banking instruments, products or mechanisms such as, but not limited to, savings, term deposits, payments and transfers, FX trading, loans or the like. The digital currency system described in the embodiments above is configured to work across multiple countries with multiple denominations of digital currency provided in terms of the linked reserve currency. However, it will be appreciated that the system may also be employed in isolation in single countries in other configurations.
6. General
Furthermore, embodiments may be implemented by hardware, software, firmware, middleware, microcode, or any combination thereof. When implemented in software, firmware, middleware or microcode, the program code or code segments to perform the necessary tasks may be stored in a machine-readable medium such as a storage medium or other storage(s). A processor may perform the necessary tasks. A code segment may represent a procedure, a function, a subprogram, a program, a routine, a subroutine, a module, a software package, a class, or any combination of instructions, data structures, or program statements. A code segment may be coupled to another code segment or a hardware circuit by passing and/or receiving information, data, arguments, parameters, or memory contents. Information, arguments, parameters, data, etc. may be passed, forwarded, or transmitted via any suitable means including memory sharing, message passing, token passing, network transmission, etc.
In the foregoing, a storage medium may represent one or more devices for storing data, including read-only memory (ROM), random access memory (RAM), magnetic disk storage mediums, optical storage mediums, flash memory devices and/or other machine -readable mediums for storing information. The terms "machine readable medium" and "computer readable medium" include, but are not limited to portable or fixed storage devices, optical storage devices, and/or various other mediums capable of storing, containing or carrying instruction(s) and/or data.
The various illustrative logical blocks, modules, circuits, elements, and/or components described in connection with the examples disclosed herein may be implemented or performed with a general purpose processor, a digital signal processor (DSP), an application specific integrated circuit (ASIC), a field programmable gate array (FPGA) or other programmable logic component, discrete gate or transistor logic, discrete hardware components, or any combination thereof designed to perform the functions described herein. A general-purpose processor may be a microprocessor, but in the alternative, the processor may be any conventional processor, controller, microcontroller, circuit, and/or state machine. A processor may also be implemented as a combination of computing components, e.g., a combination of a DSP and a microprocessor, a number of microprocessors, one or more microprocessors in conjunction with a DSP core, or any other such configuration.
The methods or algorithms described in connection with the examples disclosed herein may be embodied directly in hardware, in a software module executable by a processor, or in a combination of both, in the form of processing unit, programming instructions, or other directions, and may be contained in a single device or distributed across multiple devices. A software module may reside in RAM memory, flash memory, ROM memory, EPROM memory, EEPROM memory, registers, hard disk, a removable disk, a CD- ROM, or any other form of storage medium known in the art. A storage medium may be coupled to the processor such that the processor can read information from, and write information to, the storage medium. In the alternative, the storage medium may be integral to the processor.
One or more of the components and functions illustrated the figures may be rearranged and/or combined into a single component or embodied in several components without departing from the invention. Additional elements or components may also be added without departing from the invention. Additionally, the features described herein may be implemented in software, hardware, as a business method, and/or combination thereof.
In its various aspects, the invention can be embodied in a computer-implemented process, a machine (such as an electronic device, or a general-purpose computer or other device that provides a platform on which computer programs can be executed), processes performed by these machines, or an article of manufacture. Such articles can include a computer program product or digital information product in which a computer readable storage medium containing computer program instructions or computer readable data stored thereon, and processes and machines that create and use these articles of manufacture.
The foregoing description of the invention includes preferred forms thereof. Modifications may be made thereto without departing from the scope of the invention as defined by the accompanying claims.

Claims (41)

1. A digital currency unit, the digital currency unit comprising:
asset data indicative of an asset pool linked to the digital currency unit; and
reserve currency data indicative of a reserve currency linked to the digital currency unit, wherein the asset data and reserve currency data provide for transacting and/or valuing of the digital currency unit in a digital currency transacting system or platform.
2. A digital currency unit according to claim 1 wherein the asset data and reserve currency data are permanently digitally linked to the digital currency unit for its life within the digital currency system.
3. A digital currency unit according to claim 1 or claim 2 wherein the asset data is indicative of an asset pool comprising one or more different types of assets.
4. A digital currency unit according to any one of the preceding claims wherein asset pool comprises real estate.
5. A digital currency unit according to any one of the preceding claims where the asset data is real estate data, and wherein the real estate data is indicative of an asset pool comprising real estate assets that are digitally linked to the digital currency unit.
6. A digital currency unit according to any one of the preceding claims wherein the asset pool comprises a collection of residential and/or commercial real estate assets.
7. A digital currency unit according to any one of the preceding claims wherein the asset pool comprises real estate assets located in a single country.
8. A digital currency unit according to any one of the preceding claims wherein the price or value of the digital currency unit in the linked reserve currency is dependent on or is a function of the value of the linked asset pool.
9. A digital currency unit according to any one of the preceding claims wherein the value of the asset pool is assessed and updated periodically.
10. A digital currency unit according to any one of the preceding claims wherein the value of the asset pool is assessed and updated arbitrarily.
11. A digital currency unit according to any one of the preceding claims wherein the digital currency unit further comprises conversion ratio data indicative of a conversion ratio for converting or calculating the value of a digital currency unit in reserve currency, and vice versa.
12. A digital currency unity according to claim 11 wherein the conversion ratio is 1: 1 such that 1 digital currency unit equals 1 equivalent reserve currency unit.
13. A digital currency unity according to claim 11 or claim 12 wherein the initial value of the digital currency unit when created is based on the value of the associated or linked asset pool in the reserve currency according to the conversion ratio.
14. A digital currency unity according to any one of claims 11-13 wherein the real-time or current value of the digital currency unit is based on the updated value of the associated or linked asset pool in the reserve currency according to the conversion ratio.
15. A digital currency unit according to any one of claims 11-14 wherein each digital currency unit is part of a specific tranche of digital currency, each tranche being linked to the asset pool.
16. A digital currency unit according to claim 15 wherein the total value of the units in the digital currency tranches corresponds to the value of the linked or associated asset pool according to the conversion ratio.
17. A digital currency unit according to claim 15 or claim 16 wherein each tranche of digital currency is linked or associated with the asset pool, such that all units of digital currency are linked to the asset pool.
18. A digital currency unit according to claim 17 wherein the asset data of each digital currency unit comprises data identifying or otherwise linking to the asset pool.
19. A digital currency unit according to any one of the preceding claims wherein each digital currency unit further comprises legal data indicative of or creating a legal association between the digital currency unit and its asset pool.
20. A digital currency unit according to any one of the preceding claims wherein each digital currency unit comprises reserve currency data that digitally links the digital currency unit to a fiat reserve currency that corresponds to the country of its digitally linked asset pool.
21. A digital currency unit according to any one of the preceding claims wherein each digital currency unit is configurable to be sub-divided or transacted on in digital currency sub-units, the sub-units being a fractional value of the unit.
22. A digital currency unit according to claim 21 wherein the extent of fractional sub-units of digital currency is defined by a fractional limit.
23. A digital currency unit according to claim 21 wherein the fractional sub-units of digital currency are configured to mirror the fractional sub-units of the digitally linked reserve currency.
24. A digital currency unit according to any one of the preceding claims wherein each digital currency unit further comprises a unique ID code or unique identifier.
25. A digital currency unit according to any one of the preceding claims wherein each digital currency unit further comprises transactional data indicative of all or at least a portion of all its transactional history from creation.
26. A digital currency unit according to any one of the preceding claims wherein a digital currency unit linked to a first reserve currency has a determinable value relative to the digital currency unit linked to a second reserve currency based on the global foreign-exchange rates associated with the two different reserve currencies.
27. A digital currency unit according to any one of the preceding claims wherein where the units are implemented as a cryptocurrency.
28. A digital currency unit according to any one of claims 1-26 wherein digital currency units are implemented and controlled centrally by an administrator or central entity.
29. A digital currency unit according to any one of claims 1-26 wherein the digital currency units are implemented in a decentralised system.
30. A digital currency unit according to claim 29 wherein the digital currency are implemented using distributed ledger technology.
31. A digital currency unit according to claim 29 or claim 30 wherein transactional aspects associated with the digital currency units are executed and stored via distributed ledger technology.
32. A digital currency unit according to any one of the preceding claims wherein the digital currency units are transactable in any one or more of the following ways: purchased, sold, traded, transferred, spent, loaned, held, invested, deposited.
33. A digital currency unit according to any one of the preceding claims wherein the digital currency units are stored or held digitally or electronically by a registered user of the digital currency system using a digital wallet.
34. A digital currency unit according to any one of the preceding claims wherein the digital wallet is provided and/or accessible by an application program on an electronic device or via a website interface on a website browser.
35. A digital currency unit according to any one of the preceding claims wherein the digital currency units are accessed and spent via electronic payment cards.
36. A digital currency system for administering and facilitating transacting of digital currency units, each digital currency unit comprising:
asset data indicative of an asset pool linked to the digital currency unit; and
reserve currency data indicative of a reserve currency linked to the digital currency unit, and wherein the digital currency system comprises: an electronic control system for storing and maintaining data on the digital currency units in circulation in the digital currency system.
37. A digital currency system according to claim 36 wherein the asset data is real estate data indicative of an asset pool comprises real estate.
38. A method of creating digital currency for transactions and/or investment, the method comprising:
purchasing assets with a reserve currency and grouping the assets into an asset pool; generating a new supply of digital currency units for circulation in a digital currency system, the digital currency units of the new supply being digitally linked to the asset pool and digitally linked to the reserve currency used to purchase the assets;
issuing the new supply of digital currency for users of a digital currency system to purchase for subsequent transactions and/or investment via the digital currency system; and periodically and/or arbitrarily assessing the current value of the asset pool in reserve currency and updating the value of the digitally linked digital currency units based on the updated reserve currency value of the asset pool.
39. A method according to claim 38 wherein the asset data is real estate data indicative of an asset pool comprises real estate.
40. A user application configured to be executable on an electronic user device for administering and facilitating transacting of digital currency units in a digital currency system, each digital currency unit comprising:
asset data indicative of an asset pool linked to the digital currency unit; and
reserve currency data indicative of a reserve currency linked to the digital currency unit, and wherein the user application comprises:
a user interface configured to allow a user to transact the digital currency units within the digital currency system.
41. A user application according to claim 40 wherein the asset data is real estate data indicative of an asset pool comprises real estate.
AU2019335592A 2018-09-03 2019-09-03 Digital currency and trading system Pending AU2019335592A1 (en)

Applications Claiming Priority (3)

Application Number Priority Date Filing Date Title
NZ74597118 2018-09-03
NZ745971 2018-09-03
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US12033140B2 (en) 2020-12-16 2024-07-09 Bakkt Marketplace, LLC Efficient, accurate, and secure processing of conversions between digital assets
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US11961136B2 (en) 2020-12-16 2024-04-16 Bakkt Marketplace, LLC Efficient, accurate, and secure transfers of internally-custodied digital assets
US20220237597A1 (en) * 2021-01-22 2022-07-28 Bakkt Marketplace, LLC Alternative digital asset conversion choices
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