Metaverse Payment API for Unbanked Cryptocurrency Conversion
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Solution Overview
Problem
Current systems lack efficient methods for transferring monetary value within the metaverse, particularly between parties with varying financial access and status, and there is a need for systems that can facilitate cryptocurrency transfers to unbanked recipients.
Innovation Solution
The proposed solution involves a payment API operating within the metaverse that receives requests for cryptocurrency transfers, charges financial instruments associated with financial institutions, records transactions in ledgers, and transfers funds to digital wallets, allowing recipients to convert cryptocurrency into fiat currency or vice versa, with mechanisms for managing risk and limiting transaction amounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If cryptocurrency is transferred directly to unbanked recipients in the metaverse, then accessibility and inclusivity are improved, but risk management and transaction security become more difficult
Solution Approach 1:
The patent introduces a financial institution as an intermediary between cryptocurrency holders and unbanked recipients. The financial institution receives cryptocurrency transfers, converts them to fiat currency, and provides physical cash through ATMs or agents. This intermediary structure enables unbanked participants to receive value without direct cryptocurrency exposure while maintaining security through the financial institution's regulatory framework and risk management systems.
2Adaptability or versatility
If cryptocurrency transfers are enabled in the metaverse, then monetary exchange capability is improved, but exposure to cryptocurrency volatility increases
Solution Approach 1:
The patent changes the parameter of currency form from volatile cryptocurrency to stable fiat currency through conversion at financial institutions. When participants transfer value in the metaverse, the system automatically or manually converts cryptocurrency to fiat currency at current exchange rates, then provides the stable fiat value through traditional channels. This parameter change eliminates volatility exposure for recipients while preserving the ability to exchange value across different metaverse participants.
3Ease of operation
If direct cryptocurrency transfers are allowed to unbanked users, then ease of operation is improved, but device complexity and regulatory compliance become more challenging
Solution Approach 1:
The patent implements a self-service model where unbanked recipients can access their converted fiat currency through automated ATM machines or designated agent locations without requiring direct bank account integration or complex KYC verification in the metaverse. The financial institution handles all compliance, verification, and conversion processes in the background, while users simply receive a notification and collect cash from accessible locations. This maintains operational simplicity for end users while concentrating compliance complexity within the regulated financial institution.
Data Source
AI summary
Systems and methods for transferring currency in the metaverse. Methods may include a payment API of a financial institution operating in the metaverse receiving a request to transfer fiat currency between two parties in the metaverse, where the receiving party may be unbanked. Methods may include the payment API receiving the fiat currency from the transmitting party and funding a virtual account with the received fiat currency, where the virtual account may be associated with the financial institution. Methods may include the payment API recording the funding of the virtual account in a ledger of the financial institution. Methods may include the payment API providing a QR code to the receiving party for the latter to access the virtual account. Methods may include the receiving party leaving the metaverse and presenting the QR code to a commercial establishment to obtain value for the fiat currency funded to the virtual account.