Although the Bitcoin boom has been tempered by an ongoing list of scandals, pricing instability, and regulatory interdiction, virtual currencies are gaining renewed consideration in the banking world. That has led to international warnings about risk management concerns for both commercial institutions and central banks.
The banking interest is, in large part, fueled by mainstream commercial developments. Facebook is reportedly developing its own branded cryptocurrency and distributed ledger with hopes to create a PayPal-like payment system. In February, JPMorgan Chase, the largest bank (by assets) in the United States, announced JPM Coin, a blockchain-based technology that enables the instantaneous transfer of payments between institutional accounts. JPM Coin is among a class of instruments known as stablecoins that are backed by legal tender currencies or commodity holdings.
