CEO Noel Quinn of the world’s largest bank HSBC said that no crypto services would be provided. The executive emphasised that HSBC is less supportive of cryptocurrencies than other banks, saying “I do worry about the sustainability of the prices of cryptocurrencies.”
As a bank, we won’t participate in cryptocurrency trading or exchanges.
CEO: HSBC Will Not Enter the Cryptospace
Noel Quinn, the chief executive of HSBC, discussed his bank’s position on cryptocurrencies in an interview with CNBC-TV18 last week. He verified:
The head of HSBC emphasised how unstable cryptocurrencies are, saying: “I do worry about the sustainability of the valuations of crypto and I have done for a while. I won’t speculate on where it will go in the future.
I questioned the product’s fit for a lot of the people in the market today. Thus, HSBC has a more pessimistic view of cryptocurrencies than other banks.
Quinn then went on to discuss why HSBC is less supportive of cryptocurrencies than other banks. He declared:
“I consider bitcoin as more of an asset class than a payments mechanism, with extremely complex problems about how to value it on the balance sheet of customers since it is so volatile,” Quinn told Reuters in May of last year.
We are not interested in bitcoin as an asset class, he continued, given its volatility. As a class of assets, we are not pushing it in our wealth management company.
Quinn stated at the time that “we’re not rushing into stablecoins” for similar reasons. According to him, stablecoins do have some reserve backing to address the issues with stored value, but it depends on the sponsoring organisation as well as the reserve’s structure and accessibility. HSBC Canada informed customers that its cryptocurrency policy had changed in April of last year and said that it would no longer support the purchase or exchange of goods related to virtual currencies. For instance, customers were unable to purchase Microstrategy (MSTR-US) shares through HSBC Invest Direct.
- The CEO of HSBC explains why cryptocurrency is not in the company’s future
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