Chinese Business Method Patent "Electronic Monetary System" (CN 1096644C)

July 8, 2003
HARAKENZO World Patent & Trademark Patent Law Firm
IT Team

1. The following describes one of the two business method patents recently allowed in China. This business method patent was disclosed also in Japan in 1996, and attracted much attention. Although inventions of electronic monetary system have been around since years ago, this one is distinct in that it was a bank (Citibank) that made applications, and that the applications were made in many countries.

For the other of the two business method patents, see "Chinese Business Method Patent "Computer System for Data Management and Method for Operating Same" (CN 1097799C)", available on this website. This article introduces the Chinese patent using a patent family. For its precise contents, see the patent publication for the Chinese patent.

Chinese Patent No. 1096644
Title of the Invention: Electronic Monetary System
Application Date: November 15, 1991 (expiration date is November 15, 2011 at maximum)

1. Related Applications
(1) Application whose priority is claimed
The application for this invention is made to China with a priority claim based on U.S. Patent Application No. 07/794112. This U.S. Patent Application has already been allowed, and is disclosed as U.S. Patent No. 5453601.

(2) Related application to Japan
There is a Japanese equivalent to the patent application to China: Japanese Patent Application, Tokuganhei No. 4-330971 (Tokukaihei 6-162059, Tokukouhei 7-111723, and Patent No. 2141163) (Title of the Invention: Electronic Monetary System, Application Date: November 16, 1992), which was made with a priority claim based on the U.S. Patent Application.
From Tokuganhei No. 4-330971, a divisional application Tokuganhei No. 9-19372 (Tokukaihei 9-245108, and Patent No. 3027128) was made. From Tokuganhei No. 9-19372, a further divisional application Tokuganhei No. 10-197738 (Tokukaihei 11-96267) was made. From Tokuganhei No. 10-197738, further divisional applications Tokuganhei No. 10-204148 (Tokukaihei 11-96268), Tokuganhei No. 10-204149 (Tokukaihei 11-96269), Tokuganhei No. 10-204150 (Tokukaihei 11-96270), Tokuganhei No. 10-204151 (Tokukaihei 11-96271), Tokuganhei No. 10-204152 (Tokukaihei 11-96272), Tokuganhei No. 10-204153 (Tokukaihei 11-96273), and Tokuganhei No. 10-204154 (Tokukaihei 11-96274) were made.

2. Outline of the Chinese Patent
Independent claims 1, 13, 20, 26, (37), 41, 45, 47, 49, 52, 55, 56, 62, 65, 69, 72, 78, 82, 84, 88, and 91 of the Chinese patent are Chinese translations of the corresponding claims in the U.S. Patent. In order to outline the Chinese patent, the abstract and independent claims of U.S. Patent No.
5453601 are cited below. For corresponding parts in the application to Japan, see the Japanese pages of this website.

However, at the time of writing, the claim in the Chinese patent that is assumed to correspond to claim 37 of the U.S. Patent cannot be found, because the data disclosed by the Chinese National Council of Intellectual Property Rights is incomplete. Therefore, the content of this claim is not confirmed. Some claims are different in the Chinese patent and in the U.S. Patent, and the different parts are underlined in the following (the different parts are translated by our firm).

(1) Abstract
An improved monetary system using electronic media to exchange economic value securely and reliably. The invention provides a complete monetary system having electronic money that is interchangeable with conventional paper money comprising (1) issuing banks or financial institutions that are coupled to a money generator device for generating and issuing to subscribing customers electronic money including electronic currency backed by demand deposits, or electronic credit authorizations; (2) correspondent banks that accept and distribute the electronic money; (3) a plurality of transaction devices that are used by subscribers for storing electronic money, for performing money transactions with the on-line systems of the participating banks or for exchanging electronic money with other like transaction devices; (4) teller devices, associated with the issuing and correspondent banks, for process handling and interfacing the transaction devices to the issuing and correspondent banks, and for interfacing between the issuing and correspondent banks themselves; (5) a security arrangement for maintaining the integrity of the system; and (6) reconciliation and clearing processes to monitor and balance the monetary system.

[Diagram]

(2) Independent Claims
(Claim 1 of the Chinese Patent corresponds to claim 1 of the U.S. Patent)
1. An electronic monetary system comprising:
an issuing bank having an on-line accounting system;
electronic representations of currency that are credited in said on-line accounting system as current liabilities of said issuing bank; a money generator module associated with said issuing bank, for generating said electronic representations of currency; a teller module associated with said issuing bank, capable of storing said electronic representations of currency, and intermediating banking transactions involving said electronic representations of currency; a transaction module capable of storing said electronic representations of currency, performing on-line transactions with said issuing bank, and exchanging said electronic representations of currency with other transaction modules in off-line transactions; where said electronic representations of currency each include an original monetary value generated by said money generator module; and said teller and transaction modules having processors operative, when said modules are functioning as transferor modules transferring one of said electronic representations of currency to a transferee module, to generate and include in said transferred electronic representation of currency a transfer record having a transferred monetary value.
(Claim 13 of the Chinese Patent corresponds to claim 13 of the U.S. Patent (although some modifications are made))

13. An electronic monetary system comprising:
an issuing bank having an on-line accounting system; electronic representations of currency that are credited in said on-line accounting system as current liabilities of said issuing bank; a money generator module associated with said issuing bank, for generating said electronic representations of currency; a teller module associated with said issuing bank, capable of storing said electronic representations of currency, and intermediating banking transactions involving said electronic representations of currency; a transaction module capable of storing said electronic representations of currency, performing on-line transactions with said issuing bank, and exchanging said electronic representations of currency with other transaction modules in off-line transactions; where said electronic representations of currency include an original monetary value generated by said money generate module; said other transaction modules having processors adapted to refuse to accept attempted transfers of said electronic representations of currency when said attempted transfers occur after said expiration date of said electronic representations of currency.

(Claim 20 of the Chinese Patent corresponds to claim 20 of the U.S. Patent)
20. An electronic monetary system comprising:
an issuing bank having a first on-line accounting system;
electronic representations of money that are credited in said first on-line accounting system as current liabilities of said issuing bank a money generator module associated with said issuing bank, for generating said electronic representations of money; a teller module associated with said issuing bank, capable of storing said electronic representations of money, and intermediating banking transactions involving said electronic representations of money; a transaction module capable of storing said electronic representations of money, performing on-line transactions with said issuing bank, and exchanging said electronic representations of money with other transaction modules in off-line transactions; a security server used for implementing the security of the electronic monetary system; where said money generator module, said teller module, and said transaction module are each associated with a unique module identifier contained within a certificate that is digitally signed by said security server, where said certificates are only valid for a limited period of time, after which time said associated module will not be able to transact with other modules until a new certificate is obtained.

(Claim 26 of the Chinese Patent corresponds to claim 26 of the U.S. Patent)
26. An electronic monetary system comprising:
an issuing bank having an on-line accounting system;
an electronic credit authorization that is drawn on a subscriber's loan account in said on-line accounting system so as to reduce said subscriber's available credit line;
a money generator module associated with said issuing bank, for generating said electronic credit authorization;
a teller module associated with said issuing bank, capable of storing said electronic credit authorization, and intermediating banking transactions involving said electronic credit authorization;
a transaction module capable of storing said electronic credit authorization, performing on-line transactions with said issuing bank, and transferring said electronic credit authorization to another transaction module in
an off-line transaction; and where said electronic credit authorization includes an account number of said subscriber's loan account, a monetary amount and a digital signature produced by said money generator module; and where, when said electronic credit authorization is deposited, said issuing bank debits said subscriber's loan account by said monetary amount.

(Claim 37 of the Chinese Patent (data not found) is assumed to correspond to claim 37 of the U.S. Patent)
37. An electronic monetary system comprising:
a plurality of issuing banks having on-line accounting systems;
electronic representations of currency that are credited in said on-line accounting system as current liabilities of said plurality of issuing banks;
a plurality of money generator modules associated with said plurality of issuing banks, for generating said electronic representations of currency;
a plurality of teller modules associated with said plurality of issuing banks, capable of storing said electronic representations of currency;
a clearing bank having a data processing system for clearing said electronic representations of currency, at which each of said plurality of issuing banks has an account;
where each of said electronic representations of currency includes an issuing bank identifier; and where each of said plurality of teller modules sends electronic representations of currency deposited at its issuing bank but issued by another issuing bank to said clearing bank data processing system for balancing said issuing bank accounts and for sending each said electronic representation of currency back to said issuing bank indicated by its issuing bank identifier.

(Claim 41 of the Chinese Patent corresponds to claim 41 of the U.S. Patent)
41. An electronic monetary system comprising:
a plurality of issuing banks having on-line accounting systems;
electronic credit authorizations that are drawn on subscribers' loan accounts in said on-line accounting system so as to reduce said subscribers' available
credit lines;
a plurality of money generator modules associated with said plurality of issuing banks, for generating said electronic credit authorizations;
a plurality of teller modules associated with said plurality of issuing banks, capable of storing said electronic credit authorizations;
a clearing bank having a data processing system for clearing said electronic credit authorizations, at which each of said plurality of issuing banks has an account;
where each of said electronic credit authorizations includes an issuing bank identifier; and
where each of said plurality of teller modules sends electronic credit authorizations deposited at its issuing bank but issued by another issuing bank to said clearing bank data processing system for balancing said issuing bank accounts and for sending each said electronic credit authorization back to said issuing bank indicated by its issuing bank identifier.

(Claim 45 of the Chinese Patent corresponds to claim 41 of the U.S. Patent)
45. An electronic monetary system comprising:
an issuing bank having an on-line accounting system and a money issued reconciliation system;
electronic representations of money that are accounted for in said on-line accounting system;
a money generator module associated with said issuing bank, for generating said electronic representations of money;
a teller module associated with said issuing bank, capable of storing said electronic representations of money;
where said electronic representations of money include a note identifier used to uniquely identify each said electronic representation of money;
where said money issued reconciliation system maintains a record of said electronic representations of money that issued from said issuing bank;
and where said electronic representations of money that are deposited are sent to said money issued reconciliation system having a processor for matching said record of electronic representations of money that issued to those electronic representations of money deposited; and where unmatched cases may indicate note counterfeiting in said electronic monetary system.

(Claim 47 of the Chinese Patent corresponds to claim 47 of the U.S. Patent)
47. An electronic monetary system comprising:
an issuing bank having an on-line accounting system and a transaction reconciliation system;
electronic representations of money that are accounted for in said on-line accounting system;
a money generator module associated with said issuing bank, for generating said electronic representations of money;
a teller module associated with said issuing bank, capable of storing said electronic representations of money;
where transaction records from said money generator module, said teller module, and said on-line accounting system are periodically passed to said transaction reconciliation system;
said transaction reconciliation system having a processor for analyzing said transaction records to ensure that teller transactions match the appropriate accounting transactions and to ensure that money generator
transactions match the appropriate teller transactions and accounting transactions; and where any mismatches may indicate incomplete processing or a security breach.

(Claim 49 of the Chinese Patent corresponds to claim 87 of the U.S. Patent)
87. A system for transferring electronic notes between processor-based electronic modules comprising:
processor-based electronic modules each capable of creating a cryptographically secure channel and transferring and receiving electronic notes via said cryptographically secure channel, and where each said electronic module has a memory for storing said electronic notes;
wherein each stored electronic note comprises:
a body group of data fields including data indicative of a monetary value of said electronic note;
a transfer group of data fields including a list of transfer records, where each transfer record is generated by a transferor electronic module and appended to said electronic note upon transfer; and a signature and certificate group of data fields including a list of transferors containing each transferor electronic module's digital signature and certificate.

(Claim 52 of the Chinese Patent has no corresponding claim in the U.S. Patent) (translated by our firm)
A method for a transaction module be on the line of an electronic monetary system network, said electronic monetary system network having a network sever, said transaction, a security server and a teller module are associated through said network server, comprising the steps of;
said transaction module sending certificates to said network server;
said network server sending said certificates to said security server;
said security server recording the valid digits of said certificates;
said security server sending updated security information to said transaction module, said updated security information being key digitally signed by said security server;
said transaction verifying the validity of said digitally sign updated security information;
said transaction module updating said security information by said updated security information.

(Claim 55 of the Chinese Patent corresponds to claim 49 of the U.S. Patent)
49. A method for a transaction module having a time-limited certificate to update said certificate through interaction with a security server comprising the steps of:
said transaction module generating a new public and private key pair;
said transaction module sending certificate data including said new public key and an identifier associated with said transaction module to said security server, where said data is digitally signed by an old private key of said transaction module;
said security server verifying the validity of said data signed by said old private key;
said security server digitally signing an updated certificate incorporating said certificate data and sending said updated certificate to said transaction module; and said transaction module validating said updated certificate.

(Claim 56 of the Chinese Patent corresponds to claim 50 of the U.S. Patent)
50. A method for a subscriber using a transaction module to perform a withdrawal from said subscriber's bank account at an issuing bank having a teller module, a money generator module, and an on-line accounting system, comprising the steps of:
(a) said subscriber selecting, by way of said transaction module, said bank account from which to make said withdrawal and a withdrawal amount;
(b) said transaction module establishing a first cryptographically secure session with said teller module;
(c) said transaction module sending a withdrawal request to said teller module, via said first cryptographically secure session, where said withdrawal request includes said withdrawal amount and bank account information corresponding to said bank account;
(d) checking said bank account information to verify its validity;
(e) checking said bank account for sufficient funds;
(f) said teller module establishing a second cryptographically secure session with said money generator module;
(g) said teller module sending a create money request to said money generator module, via said second cryptographically secure session, where said create money request includes a requested note value;
(h) crediting a money issued account in said on-line accounting system by said requested note value;
(i) debiting said bank account in said on-line accounting system by said withdrawal amount;
(j) said money generator module generating a first electronic representation of money of said requested note value;
(k) transferring said first electronic representation of money to said teller module, via said second cryptographically secure session;
(l) transferring said first electronic representation of money from said teller module to said transaction module, via said first cryptographically secure session;
(m) committing said transaction module and said teller module session;
and
(n) committing said teller module and said money generator module session.
(Claim 62 of the Chinese Patent corresponds to claim 56 of the U.S. Patent)
56. A method for a subscriber using a transaction module to withdraw an electronic representation of money from a correspondent bank, comprising the steps of:
(a) said subscriber selecting, by way of said transaction module, a bank account from which to make a withdrawal and a withdrawal amount;
(b) establishing a first cryptographically secure session between said transaction module and a first teller module associated with said correspondent bank;
(c) said transaction module sending a first withdrawal request to said teller module, via said first cryptographically secure session, where said withdrawal request includes said withdrawal amount and bank account information corresponding to said bank account;
(d) checking said bank account information to verify its validity;
(e) checking said bank account for sufficient funds;
(f) establishing a second cryptographically secure session between said first teller module and a second teller module associated with said issuing bank;
(g) debiting said subscriber's bank account by said withdrawal amount in a first on-line accounting system associated with said correspondent bank;
(h) crediting a deposited at issuing bank account in said first on-line accounting system by said withdrawal amount;
(i) said first teller module sending a second withdrawal request to said second teller module, via said second cryptographically secure session, where said second withdrawal request includes said withdrawal amount;
(j) establishing a third cryptographically secure session between said second teller module and said money generator module;
(k) said second teller module sending a create money request to said money generator module, via said third cryptographically secure session, where said create money request includes said withdrawal amount;
(l) said money generator module generating a new electronic representation of money of said withdrawal amount;
(m) transferring said new electronic representation of money to said second teller module, via said third cryptographically secure session;
(n) crediting a money issued account in a second on-line accounting system associated with said issuing bank by said withdrawal amount;
(o) debiting a correspondent bank money account in said second on-line accounting system by said withdrawal amount;
(p) transferring said new electronic representation of money from said second teller module to said first teller module, via said second cryptographically secure session;
(q) transferring said new electronic representation of money from said first teller module to said transaction module, via said first cryptographically secure session;
(r) committing said transaction module and said first teller module session;
(s) committing said first teller module and second teller module session;
and
(t) committing said second teller module and said money generator module session.
(Claim 65 of the Chinese Patent corresponds to claim 59 of the U.S. Patent)
59. A method for a subscriber using a transaction module to perform a deposit to said subscriber's bank account at an issuing bank having a teller module, a money generator module, and an on-line accounting system, comprising the steps of:
(a) said subscriber selecting, by way of said transaction module, a deposit amount and said bank account in which to make said deposit;
(b) checking if said transaction module contains sufficient funds;
(c) said transaction module establishing a first cryptographically secure session with said teller module;
(d) said transaction module sending a deposit request to said teller module, via said first cryptographically secure session, where said deposit request includes said deposit amount and bank account information corresponding to said bank account;
(e) checking said bank account information to verify its validity;
(f) said transaction module transferring a first electronic representation of money to said teller module, via said first cryptographically secure session;
(g) crediting said bank account in said on-line accounting system by said deposit amount; and
(h) committing said transaction module and said teller module session.
(Claim 69 of the Chinese Patent corresponds to claim 63 of the U.S. Patent)
63. A method for a subscriber using a transaction module to deposit electronic representations of money at a correspondent bank, comprising the steps of:
(a) said subscriber selecting, by way of said transaction module, a deposit amount and a bank account in which to make a deposit;
(b) checking if said transaction module contains sufficient funds;
(c) establishing a first cryptographically secure session between said transaction module and a first teller module associated with said correspondent bank;
(d) said transaction module sending a first deposit request to said first teller module, via said first cryptographically secure session, where said deposit request includes said first deposit amount and bank account information corresponding to said bank account;
(e) checking said bank account information to verify its validity;
(f) said transaction module transferring said electronic representations of money to said first teller module, via said first cryptographically secure session;
(g) said first teller module sending a first deposit acknowledgment to said transaction module, via said first cryptographically secure session;
(h) committing said transaction module and said first teller module session;
(i) crediting said subscriber's bank account in a first on-line accounting system associated with said correspondent bank by said deposit amount;
(j) establishing a second cryptographically secure session between said first teller module and said second teller module;
(k) said first teller module sending a second deposit request to said second teller module, via said second cryptographically secure session, where said second deposit request includes said deposit amount;
(l) debiting a deposited at issuing bank account in said first on-line accounting system by said deposit amount;
(m) transferring said electronic representations of money from said first teller module to said second teller module, via said second cryptographically secure session;
(n) crediting a correspondent bank money account in a second on-line accounting system associated with said issuing bank by said deposit amount;
(o) said second teller module sending a second deposit acknowledgement to said first teller module, via said second cryptographically secure session; and
(p) committing said first teller module and second teller module session.
(Claim 72 of the Chinese Patent corresponds to claim 66 of the U.S. Patent)
66. A method for a subscriber payment using a first transaction module to transfer an electronic representation of money to a second transaction module:
(a) establishing a cryptographically secure session between said first and second transaction modules;
(b) a first subscriber selecting, by way of said first transaction module, a transfer amount;
(c) checking if said first transaction module contains sufficient funds;
(d) said first transaction module sending a first message including said transfer amount to said second transaction module, via said cryptographically secure session;
(e) said second transaction module prompting a second subscriber for verification of said transfer amount;
(f) said second transaction module sending an acknowledgement message to said first transaction module, via said cryptographically secure session;
(g) said first transaction module transferring said electronic representation of money to said second transaction module, via said cryptographically secure session; and
(h) committing said first and second transaction module session.
(Claim 78 of the Chinese Patent corresponds to claim 72 of the U.S. Patent)
72. A payment method using a first money module to transfer an electronic representation of money to a second money module, comprising the steps of:
(a) establishing a cryptographically secure session between said first money module and said second money module where said first and second money modules are tamper-proof modules;
(b) said first money module prompting a first subscriber for transaction terms, and said first subscriber supplying said first transaction terms to said first money module;
(c) said first money module sending said transaction terms to said second money module, via said cryptographically secure session;
(d) said second money module prompting a second subscriber to verify said transaction terms, and said second subscriber supplying a verification of said transaction terms;
(e) said first money module transferring said electronic representation of money to said second money module, via said cryptographically secure session;
(f) said first money module committing to said electronic money transfer by logging said electronic money transfer so that said first transaction module can no longer abort said electronic money transfer by rolling-back its state; and
(g) said second money module committing by logging said electronic money transfer so that said second money module can no longer abort said electronic money transfer by rolling-back its state.
(Claim 82 of the Chinese Patent corresponds to claim 76 of the U.S. Patent)
76. A method for a subscriber to exchange an electronic representation of a first foreign currency stored in a first transaction module for an electronic representation of a second foreign currency stored in a second transaction module, comprising the steps of:
(a) establishing a cryptographically secure session between said first transaction module and said second transaction module;
(b) said subscriber selecting, by way of said first transaction module, a first amount of said first foreign currency to be sold and an exchange rate;
(c) checking if said first transaction module has sufficient funds;
(d) said first transaction module sending said first amount and said exchange rate to said second transaction module, via said cryptographically secure session;
(e) said second transaction module prompting its owner to verify said first amount and said exchange rate;
(f) checking if said second transaction module has sufficient funds;
(g) said second transaction module sending an acknowledgment message to said first transaction module, via said cryptographically secure session;
(h) said first transaction module sending said electronic representation of first foreign currency to said second transaction module, in said first amount, via said cryptographically secure session;
(i) said second transaction module sending said electronic representation of said second foreign currency to said first transaction module, in a second amount calculated from said first amount and said exchange rate, via said cryptographically secure session; and
(j) committing said first and second transaction module session.
(Claim 84 of the Chinese Patent corresponds to claim 78 of the U.S. Patent)
78. A method for a subscriber to exchange an electronic representation of first foreign currency stored in a transaction module for an electronic representation of second foreign currency from an issuing bank having a money generator capable of generating said electronic representation of second foreign currency, a teller module, and an on-line accounting system, comprising the steps of:
(a) said subscriber selecting, by way of said transaction module, a first amount of said first foreign currency to be sold;
(b) checking if said transaction module has sufficient funds;
(c) establishing a first cryptographically secure session between said transaction module and said teller module;
(d) said transaction module sending said first amount to said teller module, via said first cryptographically secure session;
(e) said transaction module sending said electronic representation of first foreign currency to said teller module, via said first cryptographically secure session;
(f) establishing a second cryptographically secure session between said teller module and said money generator module;
(g) said teller module sending a create money request to said money generator, via said second cryptographically secure session, where said create money request includes a second amount calculated from said first amount and an exchange rate maintained by said issuing bank;
(h) crediting a money issued account in said on-line accounting system by said second amount;
(i) said money generator generating said electronic representation of second foreign currency of said second amount;
(j) transferring said electronic representation of second foreign currency to said teller module, via said second cryptographically secure session;
(k) transferring said electronic representation of second foreign currency from said teller module to said transaction module, via said first cryptographically secure session;
(l) committing said transaction module and said teller module session;
and
(m) committing said teller module and said money generator module session.
(Claim 88 of the Chinese Patent corresponds to claim 82 of the U.S. Patent)
82. A method for a subscriber to exchange an electronic representation of first foreign currency stored in a transaction module for an electronic representation of second foreign currency from an issuing bank having a money generator module capable of generating said electronic representation of second foreign currency, a second teller module, a second on-line accounting system, received via a correspondent bank having a first teller module and a first on-line accounting system, comprising the steps of:
(a) said subscriber selecting, by way of said transaction module, a first amount of said first foreign currency to be sold;
(b) checking if said transaction module has sufficient funds;
(c) establishing a first cryptographically secure session between said transaction module and said first teller module;
(d) said transaction module sending said first amount to said first teller module, via said first cryptographically secure session;
(e) said transaction module sending said electronic representation of first foreign currency to said first teller module, via said first cryptographically secure session;
(f) establishing a second cryptographically secure session between said first teller module and said second teller module;
(g) said first teller module sending a withdrawal request to said second teller module, via said second cryptographically secure session, where said withdrawal request includes a second amount calculated from said first amount and an established exchange rate;
(h) crediting a deposited at issuing bank account in said first on-line accounting system by said second amount of second foreign currency;
(i) establishing a third cryptographically secure session between said second teller module and said money generator module;
(j) said second teller module sending a create money request to said money generator module, via said third cryptographically secure session, where said create money request includes said second amount;
(k) said money generator generating said electronic representation of second foreign currency of said second amount;
(l) transferring said electronic representation of second foreign currency to said teller module, via said third cryptographically secure session;
(m) crediting a money issued account in said second on-line accounting system by said second amount of second foreign currency;
(n) debiting a correspondent bank money account by said second amount of second foreign currency;
(o) transferring said electronic representation of second foreign currency from said second teller module to said first teller module, via said second cryptographically secure session;
(p) transferring said electronic representation of second foreign currency from said first teller module to said transaction module, via said first cryptographically secure session;
(q) committing said transaction module and said first teller module session;
(r) committing said first teller module and said second teller module session; and
(s) committing said second teller module and said money generator module session.
(Claim 91 of the Chinese Patent corresponds to claim 85 of the U.S. Patent)
85. A method for updating an electronic representation of currency having an expiration date and stored in a transaction module with an updated electronic representation of currency, comprising the steps of:
(a) establishing a first cryptographically secure session between said transaction module and a teller module associated with an issuing bank;
(b) said transaction module sending an update request to said teller module, via said first cryptographically secure session;
(c) said teller module sending an acknowledgment message to said transaction module, via said first cryptographically secure session;
(d) said transaction module transferring said electronic representation of currency to said teller module, via said first cryptographically secure session;
(e) establishing a second cryptographically secure session between said teller module and a money generator module;
(f) said teller module sending a create money request to said money generator module, via said second cryptographically secure session, where said create money request includes said first amount;
(g) crediting a money issued account by said first amount in an on-line accounting system associated with said issuing bank;
(h) said money generator module generating said updated electronic representation of currency having a new expiration date;
(i) transferring said updated electronic representation of currency from said money generator module to said teller module, via said second cryptographically secure session;
(j) transferring said updated electronic representation of currency from said teller module to said transaction module, via said first cryptographically secure session;
(k) committing said transaction module and said teller module session;
and
(l) committing said teller module and said money generator module session.