US11507929B2 — Digital fiat currency (Part 1 of 2)
Document text
Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
US011507929B2
( 12) Hurry
United States Patent
et al .
( 10) Patent No .: US 11,507,929 B2
(45 ) Date of Patent : Nov. 22 , 2022
( 54 ) DIGITAL FIAT CURRENCY ( 56 ) References Cited
( 71 ) Applicant: Visa International Service U.S. PATENT DOCUMENTS
Association , San Francisco, CA (US ) 5,910,987 A * 6/1999 Ginter H04L 63/10
705/52
( 72 ) Inventors: Simon J Hurry, Foster City , CA (US ); 7,069,451 B1 * 6/2006 Ginter HO4N 7/162
Alexandre Pierre , San Mateo , CA (US ) 713/168
( 73 ) Assignee : Visa International Service (Continued )
Association , San Francisco , CA (US ) FOREIGN PATENT DOCUMENTS
( * ) Notice: Subject to any disclaimer, the term of this CN 106910072 A 6/2017
patent is extended or adjusted under 35 CN 107230053 A 10/2017
U.S.C. 154 ( b ) by 108 days . (Continued )
( 21 ) Appl . No .: 16 /678,947 OTHER PUBLICATIONS
(22 ) Filed : Nov. 8 , 2019 International Search Report and Written Opinion dated Apr. 9 , 2020
for International Application No. PCT /US2019 / 060573, 12 pages .
( 65 ) Prior Publication Data ( Continued )
US 2020/0151682 A1 May 14, 2020
Primary Examiner - Namrata Boveja
Related U.S. Application Data Assistant Examiner - Slade E Smith
(74 ) Attorney, Agent, or Firm Kilpatrick Townsend &
( 60 ) Provisional application No. 62/ 758,430 , filed on Nov. Stockton LLP
9 , 2018 .
( 57 ) ABSTRACT
(51 ) Int. Cl.
G06Q 20/06 ( 2012.01) Techniques are disclosed which include receiving, by a
G06Q 20738 ( 2012.01 ) central entity computer, a request for digital currency . The
( Continued ) request includes a serial number and a denomination of a
(52 ) U.S. CI . physical currency . The central entity computer generates the
CPC ... GO6Q 20/0655 ( 2013.01 ) ; G06Q 20/3829
digital currency for the denomination and linked to the serial
( 2013.01 ) ; H04L 9/0637 ( 2013.01 ) ; H04L 9/50 number. The generating includes recording the digital cur
( 2022.05 ) ; H04L 2209/56 (2013.01 ) rency on a blockchain . The central entity computer transmits
a notification of the generation of the digital currency . The
( 58 ) Field of Classification Search central entity computer causes removal of the physical
CPC G06Q 20/0655; G06Q 20/3829 ; GO6Q currency from circulation in a fiat currency system .
20/065 ; G06Q 2220/00 ; G06Q 20/10 ;
( Continued ) 17 Claims , 15 Drawing Sheets
400 402 405
4019
USER 403 CENTRAL ENTITY
BLOCKCHAIN REDEEMING 404 BLOCKCHAIN 4069
USER ACCOUNT ENTITY CENTRAL ENTITY ACCOUNT BLOCKCHAIN
1 1
1 1 S410
1
1
SEND REQUEST TO TRANSFORM
PHYS CAL CURRENCY TO DIGITAL 1
1
1 }
1 PROVIDE PHYSICAL CURRENCY INCLUDING 1 1
1 CURRENCY TO DENOMINATION AND SERIAL 1 { 1
] 1
REDEEMING ENTITY NUMBER 1 A SMART CONTRACT IS DEPLOYED ON THE
1 1 BLOCKCHAIN INCLUDING THE SERIAL NUMBER
1 $ 420 AND DENOMINATION OF THE PHYSICAL CURRENCY
1
1
1
11 CENTRAL ENTITY TRANSFORMS S430
1 VALUE OF PHYSICAL CURRENCY
1
1
11 TO DIGITAL CURRENCY ASSET ?
I
ON THE BLOCKCHAIN
1 1
1 CENTRAL ENTITY NOTIFIES 1 S440
1
} REDEEMING ENTITY THAT 11 1
I VALUE OF PHYSICAL 1
1 CURRENCY IS ON THE f
1 1 1
1 BLOCKCHAIN
1
1 1
1
1
1 PHYSICAL S450 CENTRAL ENTITY ACCOUNT
1
CURRENCY IS 1
DIGITAL CURRENCY 1 DESTROYED RECORDS TRANSFER TO USER
RECORDED IN 1 1 TO THE BLOCKCHAIN
USER DIGITAL S460 1 S480
I ]
WALLETS
1 S490 $
DIGITAL CURRENCY IS ASSOCIATED WITH USER'S ACCOUNT $470
US 11,507,929 B2
Page 2
( 51 ) Int . Ci . 2013/0262295 A1 * 10/2013 Narayanan G06Q 20/384
H04L 9/06 ( 2006.01 ) 705/39
H04L 9/00 ( 2022.01 ) 2015/0170112 A1 * 6/2015 DeCastro G06Q 20/381
705/39
( 58 ) Field of Classification Search 2015/0193744 A1 * *
7/2015 Adleman H04L 9/3247
CPC . G06Q 20/3678 ; GO6Q 40/04; G06Q 20/381; 705/69
G06Q 20/389; G06Q 20/40 ; G06Q 2015/0269541 A1 * 9/2015 MacGregor HO4L 9/321
20/4016 ; G06Q 20/02 ; G06Q 20/0658 ; 705/39
G06Q 20/36 ; G06Q 20/367; GO6Q 2015/0371224 A1 * 12/2015 Lingappa G06Q 20/401
20/3825 ; G06Q 20/401 ; G06Q 20/223 ; 705/71
2015/0379491 A1 * 12/2015 Ma G07F 19/209
G06Q 20/385 ; G06Q 20/382; GO6Q 235/379
20/38215 ; G06Q 20/405 ; G06Q 40/12 ; 2016/0342977 A1 * 11/2016 Lam G06Q 20/0658
G06Q 20/027 ; G06Q 20/326 ; G06Q 2017/0031676 A1 2/2017 Cecchetti et al .
20/3674 ; G06Q 20/3676 ; G06Q 20/3827 ; 2017/0293912 A1 * 10/2017 Furche G06Q 20/3825
G06Q 40/02 ; G06Q 20/102; GO6Q 2017/0308872 A1 * 10/2017 Uhr G06Q 20/363
20/1085 ; G06Q 20/204 ; G06Q 20/227; 2017/0344988 Al 11/2017 Cusden et al .
G06Q 20/3223 ; G06Q 20/40145 ; GO6Q 2018/0204191 A1 * 7/2018 Wilson HO4L 9/30
30/04 ; G06Q 40/06 ; G06Q 20/06 ; G06Q 2018/0204192 A1 * 7/2018 Whaley G06Q 20/4016
2018/0227293 A1 * 8/2018 Uhr G06F 21/64
20/105 ; G06Q 20/14 ; G06Q 20/206 ; 2018/0268382 Al 9/2018 Wasserman
G06Q 20/30 ; G06Q 20/32; G06Q 20/322; 2018/0330342 A1 * 11/2018 Prakash G06Q 20/38215
G06Q 20/363 ; G06Q 20/384; G06Q 2019/0108517 A1 * 4/2019 Rose G06Q 20/38215
20/386 ; G06Q 20/4014 ; G06Q 20/42 ; 2019/0213584 A1 * 7/2019 Shanmugam G06Q 20/38215
G06Q 2220/10 ; G06Q 30/02 ; GO6Q 2019/0236565 A1 * 8/2019 Song G06Q 20/3678
30/0241 ; G06Q 30/06 ; G06Q 30/0601 ; 2019/0251199 A1 * 8/2019 Klianev GOOF 16/2308
G06Q 40/00 ; H04L 9/0637 ; H04L 2019/0303886 A1 * 10/2019 Kikinis HO4L 9/0637
2209/38 ; H04L 2209/56 ; HO4L 9/3239 ; 2020/0027084 Al * 1/2020 Groarke HO4L 9/30
HO4L 9/3247 ; H04L 9/30 ; H04L 9/3213 ; 2020/0097927 Al * 3/2020 Groarke G06Q 20/0658
2020/0349578 A1 * 11/2020 Stehle G07D 11/30
HO4L 9/0894 ; H04L 67/10 ; HO4L 9/0643 ;
H04L 9/0891 ; H04L 9/3263 ; HO4L FOREIGN PATENT DOCUMENTS
63/126 ; H04L 67/1042 ; H04L 9/006 ;
HO4L 9/06 ; H04L 9/3218 ; H04L 63/0236 ; CN
CN
107230074 A
107392605 A
10/2017
11/2017
HO4L 63/029 ; H04L 63/08 ; HO4L 63/10 ; KR 10-2016-0009301 A 1/2016
HO4L 63/101 ; HO4L 63/12 ; H04L 9/08 ; KR 10-1591244 B1 2/2016
HO4L 9/0861 ; H04L 9/0897 ; HO4L 9/321 ; KR 10-2017-0015655 A 2/2017
H04L 9/3242 ; G06F 16/27 ; G06F KR 10-1837166 B1 3/2018
16/1815 ; GOOF 16/1834 ; G06F 16/1805 ; WO 2016/161073 Al 10/2016
GO6F 16/28 ; G06F 21/64 ; G06K 9/00087 ; WO 2017/027801 A1 2/2017
GOON 20/00 ; G07F 7/0833
USPC 705/41 OTHER PUBLICATIONS
See application file for complete search history .
Amaden et al . , “ The Libra Blockchain ” , Libra Association , Jun .
(56) References Cited 2019 , pp . 1-29 .
Castro et al . , “ Practical Byzantine Fault Tolerance ” , Proceedings of
U.S. PATENT DOCUMENTS the Third Symposium on Operating System Design and Implemen
10,084,607 B2 9/2018 Toll et al .
tation , Feb. 1999 , pp . 1-14 .
10,269,009 B1 * 4/2019 Winklevoss G06Q 20/36 Ongaro et al . , “ In Search of Understandable Consensus Algorithm ” ,
10,354,325 B1 * 7/2019 Skala G06Q 20/065 Proceedings of USENIX ATC ’14 , Jun. 2014 , pp . 305-319 .
10,373,129 B1 * 8/2019 James HO4L 9/3239 Kiayias et . al , “ Ouroboros : A Provably Secure Proof -Of -Stake
10,373,158 B1 * 8/2019 James G06Q 40/04 Blockchain Protocol ” , Jul. 20 , 2019 , pp . 1-67 .
10,438,290 B1 * 10/2019 Winklevoss G06Q 20/389 Wood , Gavin , “ Ethereum : A Secure Decentralised Generalised
10,762,506 B1 * 9/2020 Cash G06Q 20/40145 Transaction Ledger ”, EIP - 150 Revision ( a04ea02 — Sep. 30 , 2017 ) ,
10,783,501 B1 * 9/2020 Ramanathan G06Q 20/0655 pp. 1-34 .
10,929,842 B1 * 2/2021 Arvanaghi H04L 9/50 Office Action mailed for Canadian Application No. 3,119,189 dated
2003/0085271 A1 * 5/2003 Laskowski G07D 7/12
235/379 Jul. 7 , 2021 , 6 pages.
2005/0038756 A1 * 2/2005 Nagel B42D 25/29 Lipton et al . , “ Digital Trade Coin : Towards a More Stable Digital
705/76 Currency ” , Royal Society Open Science , Available online at : https : /
2010/0306087 A1 * 12/2010 Wilkes G06Q 40/04 royalsocietypublishing.org/doi/pdf/10.1098/rsos.180155, Jun . 18 , 2018 ,
705/37 15 pages.
2010/0306092 A1 * 12/2010 Wilkes G06Q 20/40 Notice of Decision to Grant received for JP Appl. No. 2021-524386
705/37 dated Oct. 7 , 2021 , 2 pages .
2011/0307487 A1 * 12/2011 Guralnik G06Q 30/02 Office Action received for KR Appl. No. 10-2021-7017015 dated
707/765 Oct. 5 , 2021 , 14 pages.
2012/0078693 A1 * 3/2012 Wilkes G06Q 30/02 Extended European Search Report dated Jun . 29 , 2022 for EP
705/44
2012/0101950 A1 4/2012 Dharmapalan Application No. 19881510.2 , 5 pages .
2012/0138677 A1 * 6/2012 Ma GO6Q 20/1085 Office Action dated Jun. 28 , 2022 for Chinese Appl. No. 201980073814 .
235/379 9 , 26 pages.
2012/0259772 A1 * 10/2012 Lee G06Q 20/10 Office Action received for Brazilian Appl. No. 112021009000-2
705/39 dated Jul. 26, 2022 , 9 pages.
US 11,507,929 B2
Page 3
( 56 ) References Cited
OTHER PUBLICATIONS
Office Action received for Brazilian Appl. No. 122022003499-3 ,
dated Jul . 26 , 2022 , 9 pages .
* cited by examiner
U.S. Patent Nov. 22 , 2022 Sheet 1 of 15 US 11,507,929 B2
MSP RO RO
RO RO RO
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,
TPNREAONCTSEWASCOTIRNOKGN 112
BLOCKCHAIN BAENDCK
106
ARCHITECT RO
RO
RO
RO
RO
RO
RO
S130 DEPLOYCONTROLS S150
VALIDATED TRANSACTIONS 118
$
GFC
ADMINISTRATES 1 0A
1 0B
1 0C
VEANLTIDATIENSG MIDLEWARE
FIG
.
1
104
NUMBER
S120 SNEONTDE SERIAL AND
DENOMINATION 108A
S140 116
00 108B PURISTOVKEYATDE
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T R AIN S AGC T N
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III
102 1 4A
PKUBELIYC USTOED PFUBOLIRC ADRES
U.S. Patent Nov. 22 , 2022 Sheet 2 of 15 US 11,507,929 B2
200
CENTRAL ENTITY COMPUTER
2020 204 206
NETWORK
PROCESSOR MEMORY
INTERFACE
208 )
COMPUTER - READABLE MEDIUM
210
MESSAGING MODULE
212
DIGITAL CURRENCY GENERATION MODULE
214
REGULATION MODULE
216
VALIDATION MODULE
FIG . 2
U.S. Patent Nov. 22 , 2022 Sheet 3 of 15 US 11,507,929 B2
306
BLOCKCHAIN S3 0 S340 / S350
AVCASIOSNLAUEBLTE
CENTIRTAYL BALCOCKOCUHANITN 1
DBICDSLTNOECMNPLRTKHASUCROIDAYICENITLDGNPCRNEATHUOYRVMSINHEBAKCTFEIADORLYN TPCEVRHUANOYRTSRHLFIEROCNUTACEMYLS BCDLTUIORCGKHONICETACEILY
1 1
.
FIG
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304
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I
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N
V C
AE
PRHEYCSEICVAEL CFIRCULAOTIOMNY
L
S310 CURENCY S320
CENTIRTAYL
302
U.S. Patent Nov. 22 , 2022 Sheet 4 of 15 US 11,507,929 B2
406
BLOCKCHAIN S430 CAENCTOIRUTANYLT TRUEACSNOERFDRS BLOCKTHETOCAIN S470
CENTIRTAYL BLOCKCHAIN ACOUNT CDSTOEMNPTLHAISAROAYCETD BISNLTEUOCLRMKUHCIBDAENILRGN DPCEATHUNOYRMSIFNHIEACTIADEOLYN
405 S480
TCERANTS1IFIROTAMYLS PVCHUAYRSLOFIEUCNACELY CDAUISRGIi1TOSETNACTLY BLOCKNTHEC AIN S440
CENTIRTAYL 1 )
S450
1 1 1 1
CURISENCY FIG
.
4
BLOCKCHAIN PHYSICAL DESTROYED S460 ACDUWSICROGECIORTAUNS'ACEHLYDT
404
TREAQNUSENDOSFESRTMCDPUHIRYGSTOIETNCALY NUMBER CENONTITI1FRITAEYLS RETNDHETIMATNYG PVHAYSOFLIUCAEL CURISONTHECY
DECSNAUEORMINTOEATNILCDNIY S420
403
REDEMING ENTITY ICPNUHRCYLORSUVEIDNCIDNAGYLE I 1 1 1 1 I 1
CURRE
!
S410 RENDETEIMITNYG
402
USER BLOCKCHAINACOUNT RCDUIRGIETNACLY ECOINRDED DUIGSIETARL WAL ETS
1
S 4 90
USER
400 401
U.S. Patent Nov. 22 , 2022 Sheet 5 of 15 US 11,507,929 B2
TLS ICA 520 TLS CAS
INTERMEDIATE
TLS RCA 518 TLS ROCASOT
516
CEPRKTIFEI(V)CYATESE
1
514 KRSEIYVGSONTKIOENRDGE
.
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FIG
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MSP B 512
502
B
510
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OAIRDNGMTAIENRIMZSATERDIAOTANTARELS
508 UNIT
ICA 506 CAS
RCA 504 RCOAST
500
U.S. Patent Nov. 22 , 2022 Sheet 6 of 15 US 11,507,929 B2
610 BLOCKCHAIN 1 I
E
BOB ()USER2 D
608
TCDEIROANSCSTVAR,IOCRUTBCKIAETOYLDSNACIPUGTLBNISCAVTIO,HEN-ARSKCLE.NGTSMDPFCDAUIRSNAGCRMSI(',ETAINEGOCRTNGLYS
606
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FIG
6
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$
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9624
S62
600 602 TRANSACTIONPROCESINGNETWORK 1
S620 A
U.S. Patent Nov. 22 , 2022 Sheet 7 of 15 US 11,507,929 B2
E ?
DCIUGR'IFIATENCLY S642
OWISFBOBNOWTHEN R
D 1
TCIARONLSVTI,AROCUTKCITOESN PDFAIRSAGMI('EATNERTGLCSBUORB',ASE64(DERC)!NCYT 1
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CURENCY CET5R6IHA3iFI6LC4ATUSEBOBC;ERT ADPUPELISCACTIRONI-ABCSLE.GMDTRAILNSIFECVREH,FUOCNCEKTRIOETN TSARUNLBSOAMHICTITEOSNBLTOCKHCAEIN
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U.S. Patent Nov. 22 , 2022 Sheet 8 of 15 US 11,507,929 B2
BLOCKCHAIN LEDGER
WORLD STATE
A DATABASE THAT HOLDS THE CURRENT
702 VALUES OF A SET OF LEDGER STATES
WORLD -706
STATE
LEDGER COMPRISES
DETERMINES
BLOCK CHAIN A TRANSACTION LOG THAT
RECORDS ALL THE CHANGES
704
THAT DETERMINE THE WORD
STATE
FIG . 7A
U.S. Patent Nov. 22 , 2022 Sheet 9 of 15 US 11,507,929 B2
HEA2DER NBULMO2BCEKR CBHULRAR2OSECNHKT PBHRELAVOISOCUHKS TRANS3ACTION HEA3DER SIGN3ATURE PROP3OSAL RESP3ONSE ENDORS3EMENTS
730 730A 730B 730C 735A 735B 735C 735D 735E
730 HEA2DER
722
BDLA2OTCAK TCERHAN.SIA2(N)CG735TOI.ODNE
DBNESAOTIS:RONTYEKD
TRANS3ACTION MBELTAO2DACTKA B L O
728
C K C H A I N
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BL2OCK CBNURAO·ENTCKEY SNEURMIBAELR
726 AMO·UNT
716 HEA1DER FIG
7B
.
BLO1DATACK TCRHANASIE.G.A1
(N);CTIODNE SPADUHBE(R)TOLEISAC BPAUDRB·UR()FROMLECISEC MBELTA1ODACTKA
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718
AMSO·UENT 720
HEAODER
708
BDLAOOTCKA )ESIS
GEN( MBELTAODCATKA
BCLHOCAKNCHAEILN 707
BLOCKO 710 712
U.S. Patent Nov. 22 , 2022 Sheet 10 of 15 US 11,507,929 B2
CBVOAWSRIEUFOTPLRAI,HENDSTUOP'RLURS
TRANSA3CTION SIGNA3TURE CASPURTIKOYPLGSNEIOTCAH,BYVGRETAINUPETHROIGDSENCESCLTEHAOCINORM()UIEPDET PROP3OSAL APCSEIWAHTUNRPALCEIPMBYOHCNAELCDTIUEDRTHSEN PRLUANBEPSOTADP(,I)OGENRSTEKRSD RESP3ONSE VSTACWURHPCALNIES,TBEOLDAHFSNCIUILDLENYLUWSTEPODHRAGLTEDR ENDORS3EMENTS OTSRLFEUGAISQNFTRPSGUIOHAZCNASITREIFNOTMHDYSNEPNDORLSIEMCENYT .FIG7C
TRANSACTION HEA3DER
TECMASREBPTNOESTANUDCTMRAIETAOSLN
735A 735B 735C 735D CAP 735E
735
U.S. Patent Nov. 22 , 2022 Sheet 11 of 15 US 11,507,929 B2
CFAURROFNE CDY
SAECNDOEURN'TS CFAURUNOFE CDY RAECEIOVUENRTS S
T
B RUAENTS ANC T
O I
D N R
TO
S
F ERC
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EMR
802 -804 810 814
FUNDS FUNDS
808 SLENNAMEGVDALR 812 RLECENAME|VGIVALR PAESLMNEOTTOAUNESDRET SEND
806 CDGFUILRGOIEBATNCTLY BALCCY:ANCE BALA:CCYNCE FIG
8
.
FROM: TO
:
G
816 818
SALTECNILHDONESUCRETS
IWCNAIHLT:TODOIRAETHPDE RASETCELINHOEVUECRTS
LITHEST
U.S. Patent Nov. 22 , 2022 Sheet 12 of 15 US 11,507,929 B2
CAEPDNUDTBRILETASYCLS 908
1
906
APBDUDBORLEISBCS
O0XE51D6FA59012B38C9D54E82B98DF625439C8146C8B3012E94F2C40A8[",|32D5C947E18D4CFA801B7D83428F0614753FDE52B938769DEACFD3A260BA47 9A
FIG
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912
0 10000000000 -914
U.S. Patent Nov. 22 , 2022 Sheet 13 of 15 US 11,507,929 B2
928
-902
OXE54C8E6E193FCB76FC67D0AB67129F312F98A1BD97D41C2926393E5FD34FDEOC
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TCBROAUNLRSTA-INOCITECIOEKTDS
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0X2CBFA05E62C5D48UO6CF783FADDBELN566B085BFC0DT81A350=8670HR4897524FD2135A9408732D319DBSC67539D16B39HT4AB5FC2 SUMMARY
NBULM596OBCERK 1RT5E7C0IE84MV6E4D5 TRANSA#1CTION
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U.S. Patent Nov. 22 , 2022 Sheet 14 of 15 US 11,507,929 B2
AD:R908ESS
0X8E84E79B15073BA1B0FA759F26EFBD8BDE20260CBC85745FB9058E0E54B2F 10X5DF93B58B62C1RC824C8DCED8OA08264FE987MAAB7 OXB7D7BI651000000N00000000P0000000U00000000T00400
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SUMMARY
NBULM602OBCEKR 1R5TE7C0I8E4IM5V0E96D TRANSA#1CTION
HASH
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VALUE CEASNLET942ITO2NRCTAEYL
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U.S. Patent Nov. 22 , 2022 Sheet 15 of 15 US 11,507,929 B2
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US 11,507,929 B2
1 2
DIGITAL FIAT CURRENCY computer, and using the trusted certificate to generate the
digital currency . In some embodiments, prior to transmitting
CROSS - REFERENCE TO RELATED the notification of the generation of the digital currency, the
APPLICATIONS recording of the digital currency on the blockchain is
5 validated by a plurality of validating entities. In some
This application is a Non - Provisional application and embodiments, the digital currency is recorded on the block
claims benefit of priority of U.S. Provisional Application chain using a public key of the central entity computer. In
No. 62 /758,430 , filed Nov. 9 , 2018 , the entire contents of some embodiments, causing the removal of the physical
currency from circulation includes physically destroying the
which is incorporated herein by reference for all purposes. 10 physical currency, the physical currency being fiat currency .
BACKGROUND In some embodiments, the request for digital currency is
a first request and the physical currency is a first physical
A cryptocurrency is a digital or virtual currency designed currency, and the method further includes receiving, by the
to work as a medium of exchange. Conventional cryptocur- central entity computer, a second request for digital cur
rencies use cryptography to secure and verify transactions as 15 rency, the second request comprising a serial number and a
well as to control the creation of new units of a particular denomination of a second physical currency, wherein the
cryptocurrency. serial number and the denomination of the second physical
Many cryptocurrencies are decentralized . Typical crypto- currency are the same as the serial number and the denomi
currency infrastructures use nodes to generate and validate nation of the first physical currency ; determining, by the
transactions without one node having more control than any 20 central entity computer, that the digital currency correspond
other node . ing to the serial number and denomination is already
Cryptocurrency systems have advantages over fiat cur- recorded on the blockchain; and refraining from generating
rency systems. For example, cryptocurrency money trans- a second digital currency based on the second request.
fers can also be faster than conventional fiat currency money In some embodiments, the blockchain includes a plurality
transfers. Lastly, because some cryptocurrencies use block- 25 of blocks , at least one block , of the plurality of blocks ,
chains, such cryptocurrencies are often trusted since block- storing data for a plurality of transactions, the plurality of
chains are immutable records of transactions. transactions including a first record indicating that the digital
While cryptocurrencies have advantages, they are gener- currency for an amount associated with the denomination
ally not subject to regulation like fiat currencies. Further, it has been created for public key associated with a digital
is not practical for governments to wholly convert their fiat 30 wallet . In some embodiments, the blockchain includes a
currency systems entirely to cryptocurrencies, since crypto- plurality of blocks , at least one block, of the plurality of
currencies require the use of electronic devices . Some seg- blocks , storing data for a plurality of transactions, the
ment of the population of a country may not have electronic plurality of transactions including a second record recording
devices so a complete conversion of fiat currencies to the removal of the physical currency from circulation . In
cryptocurrencies is not practical. 35 some embodiments, recording the digital currency on the
Embodiments of the invention address this and other blockchain generates a record in a block in the blockchain ,
problems, both individually and collectively. the record comprising a currency type of the physical
currency and the serial number of the physical currency .
BRIEF SUMMARY In some embodiments, a central entity computer includes
40 a processor; and a non -transitory computer -readable
Embodiments provide a digital fiat currency system for medium comprising code, executable by the processor, for
managing digital fiat currency generated based on physical implementing a method comprising: receiving, by the cen
currency. Embodiments provide a private permissioned dis- tral entity computer, a request for digital currency, the
tributed ledger platform for managing the digital currency . request comprising a serial number and aa denomination of a
The digital currency may be recorded to a blockchain in 45 physical currency ; generating, by the central entity com
association with data such as a serial number of a corre- puter, the digital currency for the denomination and linked
sponding physical currency, allowing a central entity to to the serial number, wherein the generating comprises
manage the volume and value of the digital currency . recording the digital currency on a blockchain ; transmitting,
In some embodiments, a computer -implemented method by the central entity computer, a notification of the genera
may include receiving, by a central entity computer, a 50 tion of the digital currency ; and causing, by the central entity
request for digital currency, the request comprising a serial computer, removal of the physical currency from circulation
number and a denomination of a physical currency ; gener- in a fiat currency system .
ating, by the central entity computer, the digital currency for In some embodiments , a computer -implemented method
the denomination and linked to the serial number, wherein includes receiving , by a blockchain node storing a block
the generating comprises recording the digital currency on a 55 chain , a request to record an action relating to removal of
blockchain ; transmitting, by the central entity computer, a physical currency with a denomination from a fiat currency
notification of the generation of the digital currency ; and system ; recording, by the blockchain node , a record of the
causing, by the central entity computer, removal of the action relating to the removal of the physical currency with
physical currency from circulation in aa fiat currency system . the denomination from the fiat currency system to the
In some embodiments, the method may further include 60 blockchain ; receiving, by the blockchain node , a request to
associating the digital currency with a digital wallet using a record digital currency in an amount equal to the denomi
private key stored to the digital wallet . In some embodi- nation, the digital currency associated with a public key of
ments, the private key of the digital wallet is stored on a chip a user ; and recording , by the blockchain node , the digital
of a smart card or a secure element of a user device . currency in an amount equal to the denomination.
In some embodiments, the method may further include 65 In some embodiments, the method further includes
receiving , by the central entity computer from a transaction receiving, by the blockchain node , a request to record a
processing network , a trusted certificate for the central entity transaction between a first user and a second user , the
US 11,507,929 B2
3 4
request including a public key of the first user , a public key According to various embodiments, the digital currency
of the second user, and a transaction amount; recording a may be issued based on the serial number of the physical
record of the transaction between the first user and the currency. According to various embodiments , the digital
second user , the record of the transaction including a public currency may be associated with, and traceable using , the
key of the first user, a public key of the second user, and the 5 serial numbers of the physical currency. According to vari
transaction amount in aa block along with the action relating ous embodiments, a transaction processing network may
to removal of physical currency with a denomination from assign the role of administrator to a central entity, and the
a fiat currency system to the blockchain . In some embodi- central entity may have exclusive permission to transform
ments, the record further includes a currency type of the physical fiat currency to digital fiat currency .
physical currency . In some embodiments, the digital cur- 10 According to the exemplary embodiments discussed
rency in the amount equal to the denomination is recorded herein, the payment ecosystem may become entirely (e.g.
to a record , the record further comprising a currency type of 100 % ) digital. According to various embodiments, cash may
the physical currency and a serial number of the physical be removed from the markets in a frictionless manner and
currency . the payment ecosystem may be improved . Users may hold
In some embodiments, the blockchain node is a bank 15 digital currency with the same denomination as the local
server computer. In some embodiments, the request is signed physical currency (e.g. , $ 100 for User A in America ; 200
using a private key of the first user . In some embodiments , pesos for User B in Mexico , and so forth ) in order to perform
the method further comprises validating a digital signature transactions in a secure , fast and reliable way .
of the first user using the public key of the first user. In some Embodiments of the present invention allow redeeming
embodiments, the method further comprises reaching con- 20 cash to digital fiat currency regulated by the central entity.
sensus with a plurality of additional blockchain nodes . In Embodiments further provide a permissioned, shared ,
some embodiments, the consensus is reached using one of: immutable transaction replicated ledger across the industry.
proof of stake, a byzantine fault tolerant algorithm , or a Embodiments may record bank note serial numbers and
crash - fault tolerant algorithm . In some embodiments , the denominations to prevent duplicate bank notes . Embodi
blockchain node uses a certificate to gain permission to write 25 ments may ensure transaction security by storing transaction
signing private keys on a chip or mobile device Secure
to the blockchain .
Element (when available) . Embodiments may also allow for
BRIEF DESCRIPTION OF THE DRAWINGS user anonymity.
Embodiments allow the transactions using digital fiat
FIG . 1 illustrates an example of an ecosystem for man- 30 currency to be processed and completed immediately with
aging digital fiat currency , according to various embodi- out requiring settlement and clearing processing. According
ments ; to various embodiments, transactions using digital fiat cur
FIG . 2 illustrates a block diagram of a central entity rency may be processed and completed immediately
computer, according to various embodiments ; between currencies without requiring cross -border remit
FIG . 3 illustrates an example of a flowchart of steps 35 tances . In addition, when an entity conducts a transaction
illustrating a central entity transforming cash into digital fiat using digital fiat currency, the transaction is a blockchain
currency, according to various embodiments; transaction , hence is traceable. According to various
FIG . 4 illustrates an example of aa flowchart of steps embodiments, entities may transact anonymously on the
illustrating an entity exchanging cash banknotes for digital digital currency platform using digital fiat currency . In some
fiat currency, according to various embodiments; 40 embodiments, entities may be required to identify them
FIG . 5 illustrates example components for managing selves to conduct transactions on the digital currency plat
permissions on the blockchain , according to various form using digital fiat currency .
embodiments; Prior to discussing specific embodiments of the invention ,
FIG . 6 illustrates an example of aa flowchart of steps for some terms may be described in detail.
asset management using digital fiat currency , according to 45 A “ central entity ” may refer to an entity that regulates
various embodiments ; something. A central entity may be a central bank , which
FIGS . 7A - 7C illustrate examples of data and metadata regulates a monetary supply. A central entity may implement
used to record digital fiat currency transactions on the a monetary policy and issue currency. A central entity may
blockchain , according to various embodiments; maintain exclusive rights to create or destroy currency in a
FIG . 8 illustrates an example interface for managing 50 region such as a nation. A central entity may be associated
digital fiat currency, according to various embodiments; and with a government of such a region .
FIGS . 9A - 9D illustrate example embodiments of imple- A “ physical currency” may refer to currency that is
menting a digital fiat currency system using the Ethereum available in a physical form , such as in the form of cash ,
framework . such as bills or coins . Physical currency is a medium of
55 exchange for goods or services. Physical currency is typi
DETAILED DESCRIPTION cally issued and regulated by a central entity .
A “ digital currency ” may refer to currency that is avail
Embodiments provide a digital fiat currency, which may able in electronic form . Like physical currency, digital
be used to convert physical currency into digital currency . currency can be exchanged for goods or services. Digital
The digitalization of cash may enable a user to perform 60 currencies include cryptocurrencies, which are a type of
digital transactions using distributed ledger technology. digital currency secured by cryptography.
Transactions to transfer the digital currency between differ- “ Fiat currency ” is currency that is a currency without
ent users may take place in real time and atomically, without intrinsic value that has been established as money, often by
the need for clearing or settlement otherwise required for government regulation .
transactions using conventional currency. The digital fiat 65 A “ blockchain ” may is a growing list of records linked by
currency may remain pegged to fiat currency exchange rates cryptography. In some embodiments , a blockchain may be in
to avoid any fluctuations in value . a digital ledger that is on many computing devices. The
US 11,507,929 B2
5 6
transactions may be recorded on a set of blocks . Each block components for executing user and / or system - generated
may contain aa hash of one or more previous blocks . Accord- requests . The CPU may be a microprocessor such as AMD's
ingly, the record of each transaction cannot be altered Athlon, Duron and / or Opteron ; IBM and / or Motorola's
retroactively without the alteration of all subsequent blocks PowerPC ; IBM's and Sony's Cell processor : Intel's Cel
and the collusion of the network . 5 eron , Itanium , Pentium , Xeon, and / or XScale ; and / or the like
A “ cryptocurrency network ” may include a one or more processor ( s ).
computers that participate in maintaining a cryptocurrency A “memory ” may be any suitable device or devices that
ledger. In some cryptocurrency networks, the distributed can store electronic data . A suitable memory may comprise
cryptocurrency ledger may comprise a blockchain . a non -transitory computer readable medium that stores
Examples of a cryptocurrency network may include net- 10 instructions that can be executed by a processor to imple
works of computers that manage any suitable cryptocur- ment a desired method . Examples of memories may com
rency including, but not limited to , Bitcoin , Litecoin , prise one or more memory chips, disk drives, etc. Such
Ethereum , Zcash , Dash, Ripple , and Monero . memories may operate using any suitable electrical, optical ,
A “key ” may include a piece of information that is used and /or magnetic mode of operation .
in a cryptographic algorithm to transform data into another 15 FIG . 1 illustrates a schematic overview of a system 100
representation. A cryptographic algorithm can be an encryp- for managing digital fiat currency, in accordance with some
tion algorithm that transforms original data into an alternate embodiments. As illustrated in FIG . 1 , the system 100 may
representation , or a decryption algorithm that transforms include a central entity 104 , a blockchain 112 , one or more
encrypted information back to the original data . Examples of validating entities ( e.g. , validating entity A 110A , validating
cryptographic algorithms may include triple data encryption 20 entity B 110B , and validating entity C 110C) , and a trans
standard (TDES ) , data encryption standard (DES ) , advanced action processing network 106. The system 100 may further
encryption standard (AES ), etc. include a redeeming entity 102 and one or more users 108 .
A “ transaction processing network ” may be data process- In some embodiments, digital fiat currency is managed
ing subsystems, networks, and operations used to support using a blockchain 112. As described above , a blockchain
and deliver authorization services, exception file services , 25 112 is a type of distributed ledger stored and validated by a
and ( if applicable ) clearing and settlement services. An plurality of distributed nodes, wherein information is
example of a transaction processing system is VisaNetTM encrypted and recorded in linked blocks . Alternatively, or
Transaction processing systems such as VisaNetTM are able additionally, the digital fiat currency may be managed using
to process credit card transactions, debit card transactions, another type of distributed ledger technology such as a
and other types of commercial transactions. The transaction 30 hashgraph. Entities within the system 100 may act as block
processing network may include a server computer. chain nodes (e.g. , validating entities 110A , 110B , and 110C ,
A " server computer " is typically a powerful computer or the transaction processing network 106 , and the central
cluster of computers . For example, the server computer can entity 104 ) . The blockchain nodes may each store the
be a large mainframe, a minicomputer cluster, or a group of blockchain 112 and record and monitor transactions on the
servers functioning as a unit . In one example, the server 35 blockchain 112 .
computer may be a database server coupled to a Web server . In some embodiments, the transaction processing network
A " digital wallet” may be an electronic device or online 106 manages permissions across the system 100. The trans
service that allows an individual to conduct online transac- action processing network 106 may identify specific roles an
tions . A digital wallet may store user profile information, entity (e.g. , central entity 104 , users 108 , validating entities
payment credentials, bank account information , cryptocur- 40 110A - 110C , etc. ) might play, and sets the basis for defining
rency account information, one or more digital wallet iden- access privileges , which may be in the context of a