eBay Files Patent Application to Accept Bitcoins

Ebay, the internet’s largest auction house and marketplace, has filed a patent that enables them to process transactions involving digital currencies, such as Bitcoin.

Ebay and PayPal (which is owned by eBay) showing an interest in cryptocurrencies, such as bitcoins. Photo: Karlis Dambrans/Flikr

Ebay and PayPal (which is owned by eBay) showing an interest in cryptocurrencies, such as bitcoins. Photo: Karlis Dambrans/Flikr

The most popular internet trading platform Ebay is showing an interest in digital currencies, such as bitcoin, in order to incorporate the usage of cryptocurrencies privately issued on different digital marketplaces.

As it was admitted, this step gives a possibility to process transactions involving digital currencies. It became possible after accepting a patent in 2011, in which Ebay is interested now.

It opens a door for currency exchange, which accesses exchange rates and accomplishes the transaction, basing on this data. What is more, one of exchangeable currencies involves a currency emitted by a private entity.

This patent really can be functioning as an exchange for users, due to the configuration of currency module. It makes various types of currencies transformable, plus to that in some operations it can be traded in cash, so cryptocurrencies become payable for off-line financial obligations as well as online bills.

Function of exchange could be used for purchasing from Ebay or other web-market resource. Working principle of the system is that the user can store value in any currency: U.S. dollars, points, miles or any other forms of currency issued by a private entity. Then this amount can be used to buy any of offered products.

Those innovations can influence also on PayPal system, which is owned by Ebay. By the way, its Chief Executive John Donahue expressed interest in integrating bitcoins into a PayPal payments network, while being interviewed by Wallstreet Journal in spring of 2013. This step could make bitcoins more recognizable and legitimate currency.
If PayPal and Ebay decide to include Bitcoins in the list of supported means of payment, it will soon become accepted by many large publicly-traded companies included in the protocol.

By the way, some time ago Overstock.com drew public attention to the fact they actively accept Bitcoins. Anyway, their payments pass through Coinbase.

It’s not clear yet how Bitcoin is going to face requirements of Ebay and PayPal. But this tendency means that large companies seriously consider possibility of cryptocurrencies introduction into payment systems.

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