Patent ID: 8712914

Claim:
A system for processing virtual currency transactions, comprising: a database configured to store a plurality of accounts, the plurality of accounts including a consumer account associated with a consumer and a plurality of merchant accounts including a transacting merchant account associated with a merchant, wherein the consumer account and the transacting merchant account each include an amount of virtual currency associated with the account; a receiving device configured to receive a transaction request for a financial transaction between the consumer and the merchant, the transaction request including the consumer account, the merchant account, and a transaction amount of virtual currency; a processor configured to approve or deny the transaction request based on at least the amount of virtual currency associated with the consumer account and the transaction amount of virtual currency, transfer the transaction amount of virtual currency from the consumer account to the merchant account upon approval of the transaction, and process the consumer account or the merchant account, wherein the processing includes converting at least part of the associated amount of virtual currency into a real currency when the account meets a predetermined criteria; and a transmitting device configured to transmit the approval or denial of the transaction request.