Central Bank Digital Currency for Phones and Watches

This patent describes a system for using a central bank-issued digital currency on mobile devices, generating a special 3D code for payments that can be scanned or read via near field communication.

What it covers

This patent outlines a system for managing and transferring a digital currency, called ZCU, issued by a central authority. A user on a mobile or wearable device can request to issue digital currency. The system prompts the user for authentication, then accesses their account, which holds payment data. When a merchant requests payment, the system matches merchant IDs, authorizes the transaction by transferring the digital currency from the user's account to the merchant's. This transfer can happen by displaying a special 3D optical code (a 'zcode') on the device's screen for scanning, or via near field communication (NFC). Once the payment is complete, the digital currency is deactivated. The zcode itself is described as a 3D machine-readable code with specific visual elements like a 'round global circle' and 'squares arranged in a round circle grid'.

What it doesn't cover

• —Digital currency systems not controlled by a central issuer (e.g., decentralized cryptocurrencies like Bitcoin).
• —Payment methods that do not involve generating and displaying an optical code or using NFC.
• —Transactions where the merchant ID does not match the user's requested merchant.
• —Digital currency that is not a 'Z currency' (ZCU) as defined in the patent.
• —Systems that do not involve a mobile or wearable device for the transaction.

The clever bit

The innovation lies in the specific method of generating and using a '3D zcode' for secure, single-use or multiple-use digital currency transactions, designed to be readable by standard devices and incorporating features to prevent double-spending and manage transaction fees.

Why it matters

This patent touches on the emerging field of Central Bank Digital Currencies (CBDCs) and how they might be implemented for everyday transactions. While still largely theoretical, CBDCs aim to provide a digital form of a country's fiat currency, potentially offering greater efficiency and control compared to existing payment systems.

Real-world examples

• 1.Hypothetical central bank digital currency systems.
• 2.Mobile payment applications.
• 3.Wearable payment devices.