HSBC has once again expressed the decision to be uninvolved in cryptocurrency transactions. The Bank let out its skepticism of cryptocurrencies and digital assets through its CEO Noel Quinn who defined the industry as volatile and suspicious.
Reuters quoted the CEO on Monday, “Given the volatility we are not into bitcoin as an asset class, if our clients want to be there then of course they are, but we are not promoting it as an asset class within our wealth management business … For similar reasons, we’re not rushing into stablecoins.”
Quinn shares the opinion that cryptocurrencies are not only volatile but also difficult to access their transparency. He stated that the cryptocurrency industry is structured in such a way that it becomes difficult to determine the owner. Another reason the CEO shared is the difficulty associated with converting cryptocurrencies to fiat.
HSBC Resistance to Cryptocurrencies
Even though other banks and financial institutions have recently begun placing a foothold on cryptocurrencies and other virtual assets, HSBC has declined to follow suit.
The company has a reputation for its unresponsiveness to cryptocurrencies. The bank had strongly indicated the dislike for virtual currencies in 2017 when it barred users from buying the stocks of companies that hold cryptocurrencies. A company like MicroStrategy was principally pointed at.
The recent confirmation on the HSBC’s stance on crypto assets was made just after the Chinese government placed a crackdown on cryptocurrency activities in the country. Bitcoin mining, institutional crypto transactions, and individuals using cryptocurrency services were suspended indefinitely. It should also be recalled that the Chinese government is a major key to the development of HSBC.
Several other banks have launched or are set to launch features on their desks to enable users to gain access to cryptocurrencies. UBS, DBS, Citigroup Inc, and Morgan Stanley are some out of the many that choose to embrace the innovation.