CN106033568A - Method and system for making payments via a value system based upon commodity assets - Google Patents
Method and system for making payments via a value system based upon commodity assets Download PDFInfo
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- CN106033568A CN106033568A CN201510122873.4A CN201510122873A CN106033568A CN 106033568 A CN106033568 A CN 106033568A CN 201510122873 A CN201510122873 A CN 201510122873A CN 106033568 A CN106033568 A CN 106033568A
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- 238000000034 method Methods 0.000 title claims description 46
- 230000004044 response Effects 0.000 claims abstract description 10
- 229910052737 gold Inorganic materials 0.000 claims description 66
- 239000010931 gold Substances 0.000 claims description 60
- PCHJSUWPFVWCPO-UHFFFAOYSA-N gold Chemical compound [Au] PCHJSUWPFVWCPO-UHFFFAOYSA-N 0.000 claims description 59
- 239000000463 material Substances 0.000 claims description 9
- 239000004215 Carbon black (E152) Substances 0.000 claims description 4
- 239000010953 base metal Substances 0.000 claims description 4
- 239000000446 fuel Substances 0.000 claims description 4
- 229930195733 hydrocarbon Natural products 0.000 claims description 4
- 150000002430 hydrocarbons Chemical class 0.000 claims description 4
- 229910052500 inorganic mineral Inorganic materials 0.000 claims description 4
- 239000011707 mineral Substances 0.000 claims description 4
- 239000010970 precious metal Substances 0.000 claims description 4
- 229910052761 rare earth metal Inorganic materials 0.000 claims description 4
- 150000002910 rare earth metals Chemical class 0.000 claims description 4
- 229910052709 silver Inorganic materials 0.000 claims description 4
- 239000004332 silver Substances 0.000 claims description 4
- 238000013500 data storage Methods 0.000 claims description 3
- 230000003247 decreasing effect Effects 0.000 claims description 3
- 229910052751 metal Inorganic materials 0.000 claims description 2
- 239000002184 metal Substances 0.000 claims description 2
- 150000002739 metals Chemical class 0.000 claims 1
- 238000013475 authorization Methods 0.000 abstract description 2
- 230000003467 diminishing effect Effects 0.000 abstract 1
- 230000002708 enhancing effect Effects 0.000 abstract 1
- 238000012546 transfer Methods 0.000 description 8
- 238000006243 chemical reaction Methods 0.000 description 7
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- 230000008901 benefit Effects 0.000 description 4
- 238000004891 communication Methods 0.000 description 3
- 230000007246 mechanism Effects 0.000 description 3
- 238000013459 approach Methods 0.000 description 2
- 238000012790 confirmation Methods 0.000 description 2
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- 238000011002 quantification Methods 0.000 description 2
- 239000002994 raw material Substances 0.000 description 2
- RYGMFSIKBFXOCR-UHFFFAOYSA-N Copper Chemical compound [Cu] RYGMFSIKBFXOCR-UHFFFAOYSA-N 0.000 description 1
- BQCADISMDOOEFD-UHFFFAOYSA-N Silver Chemical compound [Ag] BQCADISMDOOEFD-UHFFFAOYSA-N 0.000 description 1
- 238000012550 audit Methods 0.000 description 1
- 238000010276 construction Methods 0.000 description 1
- 229910052802 copper Inorganic materials 0.000 description 1
- 239000010949 copper Substances 0.000 description 1
- PQTCMBYFWMFIGM-UHFFFAOYSA-N gold silver Chemical compound [Ag].[Au] PQTCMBYFWMFIGM-UHFFFAOYSA-N 0.000 description 1
- 230000001771 impaired effect Effects 0.000 description 1
- 230000008520 organization Effects 0.000 description 1
- 238000000053 physical method Methods 0.000 description 1
- 230000009897 systematic effect Effects 0.000 description 1
- 238000005303 weighing Methods 0.000 description 1
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Abstract
The present disclosure provides a system for making payments via a value system based upon one or more commodity assets. The system includes an arrangement for maintaining one or more accounts in the value system, wherein the accounts have associated therewith one or more commodity assets, and an arrangement for diminishing or enhancing the one or more commodity assets associated with the one or more accounts in response to payments or receipts into the one or more accounts respectively. The system for making payments further includes an arrangement for using market makers for relating values of the one or more commodity assets to one or more monetary currencies employed for making the payments or receipts, wherein the market makers have external authorization outside a banking system.
Description
Technical Field
The present disclosure relates generally to financial transaction systems and, in particular, to systems for completing payments through value systems based on commodity assets, such as gold assets. Further, the present disclosure relates to a method of completing a payment through a value system based on commodity assets, such as gold assets. Further, the present disclosure pertains to a software product recorded on a machine-readable data storage medium, wherein the software product may be executed based on hardware executing the above-described method for implementing the present disclosure.
Background
Gold is a rare metal in nature and is available only at about 165,000 metric tons. Because of this rare total, a certain weight of gold requires a high cost of legal currency, such as U.S. dollars (US $) and euros, compared to other materials, such as copper, which are more abundant. Traditionally, gold has been considered a safe and conservative investment and is generally accepted worldwide because it can be readily cleared into the above legal currencies. In recent years, the interest in investing gold has grown dramatically worldwide, as it is sensible to guarantee against the instability and risk of legal monetary systems. Gold maintains its purchasing power continuously over a lengthy period of time, and through both the inflation and deflation periods of currency. Because gold is more valuable than legal currencies that are subject to quantitative loose and similar currency-inflation policies and other forms of dilution such as stocks, real property, equity, etc., there is a strong worldwide demand for gold today because a diverse set of socio-economic systems and cultural incentives drive the worldwide gold market as compared to legal currencies.
However, investment in gold is currently often not achievable due to the need for a given investor to secure his/her gold assets. Furthermore, it is time consuming for a given investor to buy large amounts of gold, maintain the security of large amounts of gold, and subsequently sell large amounts of gold as the price of the gold increases. Further, a given investor needs to continuously monitor the gold price in order to derive the best benefit from his/her gold investment.
There is currently no mechanism for group investors to execute their daily trades in connection with gold price changes without employing the known traditional methods of buying, maintaining and selling gold.
Thus, there is a need for a mechanism to help people perform their daily transactions or increase their cash assets in association with gold price increases without resorting to the traditionally known methods of buying, maintaining and selling gold.
In the last decades, financial systems around the world have evolved from units that fix their legal currencies to a fixed gold constant, i.e., the "gold standard," because the use of legal currencies allows governments to adopt monetary policies such as quantitative laxity (QE) to incentivize their economies during periods of financial crisis, e.g., at a time of economic holiday or debilitation. However, this quantification, interpreted as "banknote printing", loosely dilutes already existing legal currencies and reduces the purchasing power of a given unit of that legal currency. Moreover, the use of fiat currency has enabled financial systems to be implemented in electronic form, where a specified amount of fiat currency can be transferred from one person to another simply by communicating data. However, legal monetary systems have become increasingly disorganized, resulting in a need for a more secure means of investment. However, as previously mentioned, this safer investment approach is impractical for daily financial operations.
Disclosure of Invention
The present disclosure is directed to a system for completing payments through a value system based on one or more commodity assets and a method of operation thereof.
In one aspect, the present disclosure provides a method of operating a system for completing a payment through a value system based on one or more commodity assets. The method comprises the following steps: maintaining one or more accounts in the value system, wherein an account has one or more commodity assets associated with itself, decreasing or increasing, respectively, the one or more commodity assets associated with the one or more accounts in response to payment and revenue in the one or more accounts, and using one or more market makers to associate a value of the one or more commodity assets with one or more currency currencies used to complete the payment and revenue, wherein the one or more market makers have external authentication outside of the banking system.
The method is advantageous in that one or more accounts are defined by the amount of the commodity asset such that the monetary value of the one or more accounts in one or more legal currencies fluctuates over time while enabling purchases and payments to occur from the one or more accounts in digital representations of the one or more legal currencies; the value in the account remains unchanged even when one or more legal currencies undergo dilution, such as occurs in the historical inflation of vicious currency in the wilmam republic of approximately 1923 years.
Payment or collection is conveniently accomplished through the use of one or more personal credit or debit cards in the value system, which may be used at one or more ATMs (automated transaction machines) and/or one or more POS (point of sale) terminals. Furthermore, it is advantageous that the personal credit or debit card is radio frequency identifiable and/or chip identifiable for authentication purposes. Alternatively, one or more personal payment bracelets, or similar user-wearable items, may be used in place of one or more personal credit or debit cards to complete payments in legal currency, such as for the daily merchandise payments mentioned above.
One or more market makers are used to associate the value of one or more currency, such as legal currency, with one or more commodity assets in real time during payment or collection.
The one or more commodity assets are implemented to include at least one of a base metal, a mineral, a precious metal, gold, silver, a rare earth material, a hydrocarbon fuel product, and/or a precious material.
The value system provides information to one or more users associated with the one or more accounts, wherein the information includes an indication of the one or more commodity assets, wherein the indication is expressed as at least one of a weight, a volume, a number of physical elements, a real-time monetary market value of the one or more commodity assets.
In another aspect, embodiments of the present disclosure provide a system for completing a payment through a value system based on one or more commodity assets.
In yet another aspect, embodiments of the present disclosure provide a software product recorded on a machine-readable non-transitory data storage medium, such that the software product may be executed while executing hardware for implementing a method of operating a system for completing payments by a value system based on one or more commodity assets.
Embodiments of the present disclosure assist a user in purchasing commodity assets, such as gold, without actually possessing them, receive a debit/credit card holding an equivalent monetary balance, such as legal currency, corresponding to the purchased commodity asset, and use the debit/credit card to pay or withdraw cash in multiple currencies, such as multiple legal currencies. Debit/credit cards are particularly useful for users who travel in multiple countries but do not want to carry large amounts of cash with them. Generally speaking the present invention helps people to perform daily transactions or to add value to their cash assets through an increase in the value price of the asset, such as the gold price, without having to worry about the physical security of their assets, such as gold, or having to buy or sell gold in a traditional way that is cumbersome and difficult to implement.
Other aspects, advantages, features and objects of the present disclosure will become apparent from the drawings and from the detailed description of exemplary embodiments taken in conjunction with the appended claims.
It will be appreciated that features of the invention are susceptible to being combined in various combinations without departing from the scope of the invention as defined by the accompanying claims.
Drawings
The foregoing summary, as well as the following detailed description of certain embodiments, is better understood when read in conjunction with the appended drawings. For the purpose of illustrating the disclosure, there is shown in the drawings exemplary constructions that are disclosed. However, the invention is not limited to the specific methods and mechanisms disclosed herein. Furthermore, those skilled in the art will appreciate that the drawings are not drawn to scale. Identical components are denoted by the same reference numerals whenever possible.
FIG. 1 is a schematic diagram of a value system suitable for practicing various implementations of the present disclosure;
FIG. 2 is a schematic illustration of the steps of a method for purchasing a commodity asset in a value system according to the present disclosure;
FIGS. 3A and 3B are schematic diagrams of steps of a method for completing payment in a value system using a personal credit or debit card according to the present disclosure;
FIG. 4 is a schematic diagram of the steps of a method for purchasing and selling a commodity asset by a market maker, according to an embodiment of the present disclosure; and
FIG. 5 is a schematic illustration of the operational steps of operating a system for completing a payment through a value system based on one or more commodity assets according to the present disclosure.
Detailed Description
In the following detailed description, illustrative embodiments of the disclosure and methods in which they may be implemented are described. While the best mode for carrying out the invention is disclosed, those skilled in the art will appreciate that other embodiments for carrying out or practicing the invention are possible.
In general, the present disclosure is directed to a system for effecting payment through a value system based on one or more commodity assets. The system comprises: means for maintaining one or more accounts in the value system, wherein an account has one or more commodity assets associated with itself; means for reducing or increasing, respectively, one or more commodity assets associated with the one or more accounts in response to payments and revenues in the one or more accounts. The system for effecting payment further includes means for using one or more market makers for associating value of the one or more commodity assets with one or more currency currencies used to complete payment and revenue, wherein the one or more market makers have external authentication outside of the banking system. The present disclosure thus provides an alternative system that can work in conjunction with, or advantageously replace, existing known banking systems.
Referring now to the drawings, and more particularly to the coding by which it is referenced, FIG. 1 is a schematic diagram of a value system, indicated generally at 100, suitable for practicing various implementations of the present disclosure. Value system 100 includes user 102, escrow and trusted 104, separate bank accounts 105a, 105b, and 105c, merchandise escrow 106, market maker 108, card issuer 109, card processor 110, debit/credit card 112, and merchant terminal 114. The value system 100 is advantageously implemented using various technical means, such as computing means and one or more data communication networks communicating with each other in a manner hitherto unknown.
The user 102 may be an individual, a corporate entity, a non-profit organization, and so on. Further, custody and entrusted 104 may be a global economic entity that manages separate bank accounts 105a, 105b, and 105c of user 102 in various jurisdictions around the world. In an exemplary embodiment, the escrow and trusted 104 may be a commercial trusted company, hong kong, that holds the user's funds in a plurality of separate accounts 105a, 105b, and 150c through an international bank such as HSBC, which is currently operating in currency, i.e., legal currency, such as U.S. dollars (USD), hong kong coins (HKD), british pounds (GBP), Australia (AUD), jian (CAD), franc (CHF), Japanese (JPY), New Zealand Dollars (NZD), tai dollars (THB), singapore dollars (SGD), Euros (EUR), and renminy dollars (CNY).
In one embodiment, the user 102 may hold a bank account 105a, but not be eligible to receive a debit/credit card corresponding to the bank account 105 a. In another embodiment, the user 102 may not have a bank account in a particular jurisdiction, but does not wish to carry a large amount of cash when traveling to that jurisdiction.
The commodity depository 106 facilitates the provision and storage of one or more commodity assets, including, but not limited to, base metals, minerals, precious metals, gold, silver, rare earth materials, hydrocarbon fuel products, and/or raw materials, for example. In an exemplary embodiment, the commodity depository 106 includes a network of gold depositories for gold depositories of gold silver library members (LBMAs), london/zurich/singapore and commercial trust limited.
The market maker 108 is a third (3rd) party service provider and is a non-banking institution that establishes relationships with the user 102, the escrow and escrow 104, the merchandise escrow 106, and the card issuer 109, and allows substantially instantaneous selling and buying of merchandise capital at current market prices, independent of traditional banking systems that employ monetary value, i.e., legal monetary value. In one embodiment, the market maker 108 holds a first share of the commodity asset from the commodity depository 106 while the first share is securely held in the commodity depository 106 itself. The market maker 108 enables the user 102 to purchase a second share of the commodity asset from the first share of the commodity asset while the second share is securely hosted in the commodity depository 106 itself. Neither the user 102 nor the market maker 108 receives physical possession of the commodity asset due to the costs and risks associated with logistics, transportation, and handling of the commodity asset outside of the secure vault. To ensure the integrity of the system 100, the market maker's 108 activities are recorded and audited by an independent auditor (not shown); in the event that the market makers do not meet the criteria, the system 100 may be configured to employ alternative market makers 108.
In one embodiment, the escrow and escrow 104 manages the transfer of funds to the market makers 108 for purchasing the second share of the good assets. The market maker 108 maintains a record of the weight, volume, number of physical elements, and real-time monetary market value of the good asset in one or more currency currencies, such as legal currencies, and continuously updates the fluctuation of the equivalent monetary balance of the second share of the user 102 as the price of the potential good asset fluctuates.
The market maker 108 further enables the card issuer 109 to issue a debit/credit card 112 to the user 102, wherein the debit/credit card 112 provides access to an equivalent monetary balance corresponding to the second share of the good asset in the escrow 106. The debit/credit card 112 is a multi-currency card that may be used at various point-of-sale (POS) terminals 114a and ATMs 114b throughout multiple jurisdictions. In an exemplary embodiment, the card issuer 109 may be a member of a card association including well known cards such as Master card, Visa, Diner club, Discover card, American express card, Chinese Union card, and Japanese Credit card office (JCB), and the debit/credit card 112 may be used to cash local currency called legal currency on 2,300,000 ATMs, for example, worldwide, or to purchase goods and services anywhere a card accepts a credit card association.
When the user 102 presents his card 112 at the merchant terminal 114 to perform a transaction, the merchant terminal 114 sends an authentication request to the card issuer 109 by way of the card processor 110, where the card processor 110 then sends the authentication request to the market maker 108. The market maker 108 checks whether the available equivalent monetary balance on the card 112 is sufficient to pay for the transaction. The available equivalent monetary balance is immediately assessed based on the total amount of the commodity asset allocated to the user and the current market price of the commodity asset. When the equivalent currency balance associated with the card 112 is sufficient to pay for the transaction, the market maker 108 communicates it to the card issuer 109, updating the available equivalent currency balance of the card 112, and also updating the reduced amount/share of the good asset corresponding to the updated equivalent currency balance. Card issuer 109 then sends an authentication response to merchant terminal 114 through card processor 110, and card processor 110 then completes the transaction in substantially real time, e.g., within a few milliseconds. In various embodiments, card processor 110 provides a link between the global POS/ATM network and card issuer 109. The card processor 110 provides transaction approval from the market maker 108 and settlement information to the card issuer 109, where the card issuer 109 receives settlement funds from the market maker 108.
In one embodiment, the market maker 108 periodically transfers funds to the card issuer 109 to enable the card issuer 109 to perform transactions related to the debit/credit card 112. In one embodiment, the market maker 108 may set a daily maximum limit for funds transferred daily to the card issuer 109. Thus, in contrast to conventional systems of authentication and funds transfer by banks, the market maker 108 provides authentication to the card processor 109 and transfers funds thereto for completing a transaction. Alternatively, the ATM114b is part of a conventional banking system, but when the user 102 accesses the ATM114b using the card 112, it sends an authentication request to the market maker 108, i.e., to a physical terminal of the conventional banking system, rather than to the corresponding card issuer; the conventional banking system receives funds from the market makers 108 to process the transaction. Thus, the market maker 108 completely bypasses the traditional bank's authentication process that enables the user 102 to complete the purchase or withdrawal of cash at the merchant terminal 114. In one approach, the market makers 108 solve the problems encountered with conventional banking systems, such as mishandling of the value of the goods in a manner that is advantageous to the bank, and the value of the goods provided by the bank is not updated in real time, which can result in accounting errors, benefits to the bank, and losses to the user.
In fig. 1, only an embodiment is shown that should not unduly limit the scope of the claims herein. Those skilled in the art will appreciate that there are numerous variations, permutations and variations of the embodiments herein.
FIG. 2 is a schematic illustration of the steps of a method of purchasing a commodity asset in a value system 100 according to the present disclosure. The method is depicted as a series of steps in a logical flow graph, representing sequential steps that can be implemented in hardware, software, or a combination thereof.
In step 202, the user 102 may register himself with the market maker 108. In one embodiment, the user 102 may register himself online on the market maker's 108 secure website, wherein the user 102 may purchase and sell one or more commodity assets, check the real-time monetary value of the purchased commodity assets in multiple currencies, receive automatic text and mail prompts, receive a profit-and-loss form, and the like. At step 204, the user may transfer funds to the custody and entrusted 104 to purchase a first total amount of the commodity asset from the market maker 108. In one embodiment, funds may be added in different ways, namely physical methods such as cash or checks and electronic methods such as wire transfer from another account.
At step 206, funds may be transferred from the custody and entrusted 104 to the market makers 108 to purchase a first total amount of commodity assets, wherein the market makers 108 operate in a default legal currency, such as U.S. dollars (US $, USD). In one embodiment, the market maker 108 may specify a minimum total amount of commodity assets that the user must buy to complete the purchase. The total amount of funds required to purchase the first total amount of commodity assets may be calculated by equation 1 (eq.1):
RF＝ACAUPFXMMMMEq.1
wherein,
RFthe necessary capital;
ACAtotal amount of commodity assets;
FXMthe foreign exchange guarantees gold;
MMMprofit for the market maker 108; and
wherein the foreign exchange deposit is a money conversion fee for the default currency and the profits of the market makers 108 correspond to the service fees of the market makers 108.
In one embodiment, if the user 102 wishes to purchase 10 grams of gold using his/her legal currency in the form of pounds per square (GBP), the funds that will then need to be transferred to the market maker 108 will be the sum of the real-time monetary value of the 10 grams of gold, the monetary conversion fee from GBP to USD, and the service fee of the market maker 108.
At step 208, the market maker 108 sells a first total amount of the good assets to the user 102 by allocating a share of the good assets in the good stock 106 to the user 102. In one embodiment, the market makers 108 allocate a share of the commodity assets from the market makers themselves to the users 102 in the commodity depositors 106. After the market maker 108 allocates the first total amount of the commodity asset to the user 102, a confirmation notification is sent to the user 102 via SMS and/or email, wherein the confirmation includes the total amount of the purchased commodity asset and the current market value.
In one embodiment, the market makers 108 maintain one or more conversion tables to create/update the equivalent monetary balance, e.g., the legal monetary balance corresponding to the good assets allocated to the users, and continuously update any fluctuations in the equivalent monetary balance of the users 102 based on fluctuations in market prices of the potential good assets.
Finally, at step 210, the market maker 108 enables the card issuer 109 to issue the debit/credit card 112 to the user, wherein the debit/credit card 112 can use an equivalent monetary balance, such as a legal monetary balance corresponding to the merchandise assets purchased by the user 102, that is, the card is technically unprimed, until one or more of the merchandise assets are purchased by one or more market makers 108; however, one or more market makers maintain a flow of funds at the issuer to ensure that the user 102 is provisioned, i.e., "covered," although the flow of funds may optionally be subject to daily withdrawal limits set by the issuer or one or more market makers 108. That is, the technical card is unprimed until the asset is purchased by a market maker; however, market makers maintain a flow of funds at the issuer to ensure that customers are covered, which may suffer from daily withdrawal limits set by the issuer or market maker.
In one embodiment, the equivalent monetary balance available to the debit/credit card 112 may fluctuate according to fluctuations in market price of the underlying commodity asset. Generally, legal currency has a tendency to expand in currency, as more is being made by the relevant governments, for example as a result of quantification laxity to stimulate economic growth, and this fluctuation tends to favor the user by increasing the value of the user's allocated commodity assets expressed in legal currency.
In an exemplary embodiment, if the value of the commodity asset, such as gold, allocated to the user is $2,000USD, the user may get an equivalent monetary balance approaching $2,000USD through their debit/credit card 112. If the value of gold increases to $2,100.00, the equivalent monetary balance will increase to approximately $2,100.00 USD. Conversely, if the value of the gold bar is reduced to $1,900.00, the equivalent monetary balance will be reduced to approximately $1,900.00 USD. Thus, the user 102 would benefit from or be impaired by fluctuations in the market price of the commodity asset.
Fig. 2 is merely an example, which does not unduly limit the scope of the claims herein. Those skilled in the art will appreciate that there are numerous variations, permutations and variations of the embodiments herein.
FIG. 3 is a schematic diagram of the steps of a method for completing a payment in value system 100 using a personal debit/credit card 112 according to the present disclosure. The method is depicted as a series of steps in a logical flow graph, representing sequential steps that can be implemented in hardware, software, or a combination thereof.
At step 302, the user presents debit/credit card 112 at merchant terminal 114 to complete the transaction. The merchant terminal 114 may be a POS terminal 114a that facilitates the purchase of goods/services or an ATM114b that facilitates the withdrawal of cash. Upon receiving the transaction request, merchant terminal 114 sends an authentication request to card issuer 109 through card processor 110 to complete the transaction. The authentication request may include details such as a debit/credit card number, a transaction amount, and/or a merchant identification.
In contrast to conventional systems where the authentication request is sent from the card issuer 109 to the user's 102 bank, the authentication request is sent from the card issuer 109 to the market maker 108 at step 304. The market makers 108, which are entities outside of traditional banking systems, enable the users 102 to immediately sell and buy commodity assets without involving their banks.
At step 306, the market maker 108 checks whether the available equivalent monetary balance of the card 112 is sufficient to complete the transaction. The market makers 108 maintain one or more conversion tables to calculate real-time monetary value, i.e., legal value, of one or more of the commodity assets in different currencies. In an exemplary embodiment, when the commodity asset is gold, the market maker 108 calculates the available equivalent monetary balance using equation 2(Eq.2) below:
ACEB＝GgbGpFXMMAGMGMMMEq.2
wherein,
ACEBan available equivalent monetary balance;
Ggbbalance of grams of gold;
gp-gold price, i.e. the current unit price of gold
FXMForex deposit (if any);
GMMMgold profit for market makers 108; and
wherein,
the gold gram balance is the weight of gold that is allocated to the user 102 in the merchandise depository 106; and
when the merchant terminal 114 currency, i.e., the legal currency, is not the U.S. dollar but the default currency of the market maker 108, the foreign exchange guarantees that the money is a currency conversion fee. However, it will be appreciated that a drop in "oil dollars" as a result of "oil peak theory" will result in other legal currencies becoming mainstream in the future, and thus other legal currencies that are not dollars will be selectively employed. The maximum expected gold flow represents the daily transaction limit for the card 112 and the gold profit for the market maker 108 represents the service fee charged by the market maker 108 for completing the transaction.
In one embodiment, if the user 102 wishes to extract pounds per square (GBP) from the ATM114b, the available equivalent monetary balance in the card 112 will be the sum of the instant monetary value of the available gold, the monetary conversion fee from GBP to USD, and the service fee of the market maker 108.
If the available equivalent monetary balance is not sufficient to cover the transaction amount, the transaction is rejected by the market maker 108 and a notification is sent to the user in a communication such as SMS and/or email, at step 308.
If the available equivalent currency balance is sufficient to cover the total amount of the transaction, the transaction is authenticated by the market maker 108, and then an authentication response is sent to the card issuer 109, the card issuer 109 forwards the response to the card processor 110, at step 310. The market maker 108 immediately deducts the transaction amount from the available equivalent currency balance of the card 112 and updates the reduced equivalent currency balance. Card processor 110 forwards the authentication response to merchant terminal 114, which merchant terminal 114 then completes the transaction.
At step 312, the total amount of the commodity asset remaining for the user 102 is updated based on the reduced equivalent monetary balance and the current market price of the potential commodity asset. The total amount of the merchandise assets allocated to the user 102 decreases with each transaction of the debit/credit card 112. Thus, the user 102 sells potential merchandise assets to the market maker 108 in exchange for purchased goods/services or cash; the "cash" in this case is, for example, legal currency.
At step 314, funds are transferred from card issuer 109 to merchant 114 to complete the transaction. In one embodiment, the market maker 108 periodically transfers a predetermined total amount of funds to the card issuer 109 so that the card processor 110 may immediately approve the transaction upon receiving a transaction request from the debit/credit card 112 and the card issuer 109 that the transaction may be paid for by the merchant terminal 114.
Finally, at step 316, a notification is sent by the market maker 108 to the user 102, where the notification may include details such as the updated amount of the good asset being dispensed, the real-time monetary value of the good asset, the transaction details of the card 112, and the like. The user 102 may receive the notification through various means of communication, such as through an email message, text and multimedia message, automatic telephone call, fax, update on the market maker's website.
In various embodiments of the present invention, the market makers 108 collect offers in all transactions, currency conversions, and the use of debit/credit cards 112 with respect to buying and selling merchandise assets. In addition, the market makers 108 may collect monthly administrative fees, storage and funds from the users 102.
It is noted herein that steps 302-316 are merely exemplary, and that other alternatives may be provided where one or more steps are added, one or more steps are deleted, or one or more steps are provided in a different order, without departing from the scope of the claims herein.
Fig. 3 is merely an example, which does not unduly limit the scope of the claims herein. Those skilled in the art will appreciate that there are numerous variations, permutations and variations of the embodiments herein.
FIG. 4 is a schematic illustration of the steps of facilitating the purchase and sale of merchandise assets by the market makers 108, according to an embodiment of the present disclosure. The method is depicted as a series of steps in a logical flow graph, representing sequential steps that can be implemented in hardware, software, or a combination thereof.
At step 402, the market maker 108 receives a request from the user 102 to purchase a first total amount of a good asset. In one embodiment, the market makers 108 hold a first share of the commodity assets in the commodity depositories 106 and allow customers to purchase a first total amount of the commodity assets from their own first share of the commodity assets. At step 404, a first total amount of the commodity asset is allocated to the user 102 after the market maker 108 receives the necessary funds from the user 102. The necessary funds may be calculated according to equation 1 (eq.1). In an exemplary embodiment, the market maker 108 may hold 1-2 LBMA gold bars weighing 12.4 kilograms or 400 ounces each worth about $545,000 in the commodity depository 106 and distribute a first total amount of commodity assets to the user as 100 grams of gold upon receiving the necessary funds. While the gold bar remains intact, system 100 allows for the establishment of ownership of a portion of a given gold bar that is relinquished as user 102 completes purchases and payments in a currency, i.e., legal, currency.
At step 406, the revenue for the sale may be used by the market maker 108 to purchase a first total amount of virtual good assets. In an exemplary embodiment, the market maker 108 may use the revenue of selling 100 grams of gold to purchase 100 grams of virtual gold from a virtual gold traffic provider, thereby using the virtual gold to hedge the purchase of physical gold.
In step 408, when the first share of the commodity assets held by the market maker 108 decreases to a predetermined minimum, the market maker 108 may sell the virtual commodity assets and replenish the inventory of the commodity assets with the sold avails. In an exemplary embodiment, when the gold held by the market makers 108 is reduced to an equivalent bar denomination, the virtual gold held by the market makers 108 is sold to purchase LBMA gold bars. The buying and subsequent selling of virtual gold minimizes the losses caused by price volatility of LBMA gold bars. However, it will be appreciated that during periods of high float for hedging virtual gold, such as a stock tipping event occurring in wale street such as the 1920 s, the system 100 may selectively revert to employing only physical commodity assets such as physical gold.
In other embodiments, the market maker 108 may use the sold proceeds of the virtual good asset to transfer funds to the card issuer 109 to secure its payment for the debit/credit card 112 transaction.
It is noted herein that steps 402 through 408 are merely exemplary, and that other alternatives of adding one or more steps, deleting one or more steps, and changing the order of one or more steps may also be provided without departing from the scope of the claims herein.
Fig. 4 is merely an example, which does not unduly limit the scope of the claims herein. Those skilled in the art will appreciate that there are numerous variations, permutations and variations of the embodiments herein.
FIG. 5 is a schematic diagram of the steps of operating a system for completing a payment through one or more commodity asset based value system 100 according to the present disclosure. The method is depicted as a series of steps in a logical flow graph, representing sequential steps that can be implemented in hardware, software, or a combination thereof.
At step 502, one or more accounts are maintained in the value system 100, where an account has one or more commodity assets associated with itself. At step 504, one or more merchandise assets associated with the one or more accounts are decreased or increased in response to payment or revenue, respectively, from the one or more accounts. At step 506, one or more market makers 108 are used to associate the value of one or more commodity assets with one or more currency currencies used to complete the payment or collection, such as legal currencies, wherein the one or more market makers 108 have external authentication outside of the banking system. As described above, an independent auditor advantageously audits one or more market makers 108 externally to ensure the integrity and robustness of the value system 100 to fraudulent and spoilage effects.
It is noted herein that steps 502-506 are merely exemplary, and that other alternatives of adding one or more steps, deleting one or more steps, and changing the order of one or more steps may also be provided without departing from the scope of the claims herein.
From the above, it will be appreciated that the authentication of the gold transaction by one or more market makers 108 occurs outside of traditional banking systems. Such conventional banking systems are susceptible to disrapting, for example, due to excessive financial transactions undertaken in the form of legal currency, and due to substantial highly expansive government policies, such as, for example, excessive quantitative relaxation undertaken for the purpose of attempting to create short-term economic growth prior to general election and/or general election. Thus, even when a conventional banking system experiences systematic problems, such as stock collapse, the system 100 is able to save value for its users 102. In addition, the system 100 is also able to robustly operate with currency, i.e., legal currency.
Unlike conventional known banking systems, the system 100 does not directly have any monetary allocation to the user's 102 credit or debit card, but rather connects a credit or debit card compatible with the system 100 to one or more merchandise assets, an element that is not simply inflated with the form of legal currency. In addition, the system 100 can support multiple currency bins for use by the user 102. Further, the user 102 can assume external authorization for a credit or debit card to use the system 100 while using a party responsible for managing the operation of the system. Payment associated with the system 100 may be accomplished by taking one or more of a mobile phone, a smart phone, an RFID identifiable device, and a biochemically implanted electronic chip module. The system 100 maintains a record of the identity of the user 102 and optionally blocks transactions associated with the user 102 if the user 102 appears to be non-personally operated, such as when the credit or debit card of the user 102 is stolen and an authorized party attempts to use the stolen credit or debit card.
While embodiments of the present invention have been fully described in the foregoing with particularity to clarify aspects of the invention, those skilled in the art will recognize that other variations of the invention are possible.
Claims (19)
1. A method of operating a system for completing a payment through a value system based on one or more commodity assets, wherein the method comprises:
(a) maintaining one or more accounts in the value system, wherein the accounts have one or more commodity assets associated with themselves;
(b) decreasing or increasing, respectively, the one or more commodity assets associated with the one or more accounts in response to payments and revenues in the one or more accounts;
wherein the method further comprises:
(c) using one or more market makers to associate the value of the one or more commodity assets with one or more currency currencies used to complete the payment and revenue, wherein the one or more market makers have external authentication outside of a banking system.
2. The method of claim 1, wherein the method comprises:
(d) setting the one or more commodity assets to include one or more physical metals; and
(e) the implementation of the payment or revenue is done in one or more legal currencies.
3. The method of claim 1, wherein the method comprises:
(f) in the value system, the payment or revenue is accomplished through the use of a personal credit or debit card.
4. The method of claim 3, wherein the method comprises:
(g) the system is arranged to support the use of the personal credit or debit card, wherein the personal credit or debit card is radio frequency identifiable and/or chip identifiable for authentication purposes.
5. The method of claim 4, wherein the method comprises:
(h) the one or more personal credit or debit cards are arranged to be usable at one or more ATMs and/or one or more POS terminals.
6. The method of claim 1, wherein the method comprises:
using the one or more market makers in real-time to associate the value of the one or more currency currencies with the one or more commodity assets when the payment or revenue is effected.
7. The method of claim 1, wherein the method comprises:
implementing the one or more commodity assets to include at least one of a base metal, a mineral, a precious metal, gold, silver, a rare earth material, a hydrocarbon fuel product, and/or a precious material.
8. The method of claim 1, wherein the method comprises: setting the value system to provide information to the one or more users associated with the one or more accounts, wherein the information includes an indication of the one or more commodity assets, wherein the indication is expressed as at least one of a weight, a volume, a number of physical elements, a real-time monetary market value of the one or more commodity assets.
9. The method of claim 1, wherein the method comprises auditing transactions performed by the one or more market makers by employing an independent auditing method.
10. A software product recorded on a machine-readable non-transitory data storage medium, wherein the software product is capable of being executed when executing hardware for implementing the method of claim 1.
11. A system for completing a payment through a value system based on one or more commodity assets, wherein the system comprises:
(a) means for maintaining one or more accounts in the value system, wherein the account has one or more commodity assets associated with itself;
(b) means for reducing or increasing, respectively, the one or more commodity assets associated with the one or more accounts in response to payments and revenues in the one or more accounts;
wherein the system for payment further comprises:
(c) means for using one or more market makers for associating value of the one or more commodity assets with one or more currency currencies used to complete the payment and revenue, wherein the one or more market makers have external authentication outside of a banking system.
12. The system of claim 11, wherein the system comprises:
(d) the one or more commodity assets are embodied as one or more physical materials; and
(e) the payment or revenue is conducted in one or more legal currencies.
13. The system for completing a payment of claim 11 wherein the system for completing a payment further comprises:
(f) means in the value system for completing the payment or revenue by using a personal credit or debit card.
14. The system for completing a payment of claim 12 wherein the system comprises:
(g) means for enabling the system to support the use of the personal credit or debit card, wherein the personal credit or debit card is radio frequency identifiable and/or chip identifiable for authentication purposes.
15. The system for completing a payment of claim 14 wherein the system comprises:
(h) means for enabling said personal credit or debit card to be used at one or more ATMs and/or one or more POS terminals.
16. A system for completing payment as recited in claim 11 wherein the system includes means for using the one or more market makers in real time to associate the value of the one or more currencies with the one or more commodity assets when effecting the payment or revenue.
17. A system for completing a payment as recited in claim 11 wherein the system includes means for implementing the one or more commodity assets to include at least one of a base metal, a mineral, a precious metal, gold, silver, a rare earth material, a hydrocarbon fuel product, and/or a precious material.
18. A system for completing payment as recited in claim 11, wherein the system includes means for causing the value system to provide information to the one or more users associated with the one or more accounts, wherein the information includes an indication of the one or more commodity assets, wherein the indication is expressed as at least one of a weight, a volume, a number of physical elements, a real-time monetary market value of the one or more commodity assets.
19. A system for completing payment according to claim 11 wherein said system includes auditing means for auditing transactions performed by said one or more market makers by employing independent auditing means.
Applications Claiming Priority (2)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| AU2015100230A AU2015100230A4 (en) | 2015-02-25 | 2015-02-25 | Method and system for making payments via a value system based upon commodity assets |
| AU2015100230 | 2015-02-25 |
Publications (1)
| Publication Number | Publication Date |
|---|---|
| CN106033568A true CN106033568A (en) | 2016-10-19 |
Family
ID=52706476
Family Applications (1)
| Application Number | Title | Priority Date | Filing Date |
|---|---|---|---|
| CN201510122873.4A Pending CN106033568A (en) | 2015-02-25 | 2015-03-19 | Method and system for making payments via a value system based upon commodity assets |
Country Status (2)
| Country | Link |
|---|---|
| CN (1) | CN106033568A (en) |
| AU (1) | AU2015100230A4 (en) |
Cited By (1)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| CN107833380A (en) * | 2017-09-30 | 2018-03-23 | 杭州金通公共自行车科技股份有限公司 | Dodged based on Unionpay and pay hire a car system and its control method and device |
-
2015
- 2015-02-25 AU AU2015100230A patent/AU2015100230A4/en not_active Ceased
- 2015-03-19 CN CN201510122873.4A patent/CN106033568A/en active Pending
Cited By (1)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| CN107833380A (en) * | 2017-09-30 | 2018-03-23 | 杭州金通公共自行车科技股份有限公司 | Dodged based on Unionpay and pay hire a car system and its control method and device |
Also Published As
| Publication number | Publication date |
|---|---|
| AU2015100230A4 (en) | 2015-03-26 |
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