As a result of the ongoing volatility and cyber attacks in the crypto world, institutions are losing interest in investing in digital currency. Recently, the British government alerted citizens to not utilize digital assets.
The banking giant HSBC stated that it was not interested in crypto assets. The entity rejected the idea of considering Bitcoin as an investment asset. According to HSBC, the crypto doesn’t have constant stability in its price value and it lags in a lot of transparency. Many countries are opposed to cryptocurrency adoption.
The CEO of HSBC, Noel Quinn, stated that the crypto world is not suitable for everyone. More than 1 billion people across the world are into cryptocurrency without any proper regulations and guidelines from the public administration.
In the previous year, the CEO stated that “I view bitcoin as more of an asset class than a payment vehicle, with very different questions about how to value it on the balance sheet of clients because it is so volatile.”
Crypto currency is not secure and it is still prone to many cyber attacks carried out by hackers. In recent years, more than 51% of cyber attacks have attacked crypto currency, with the majority of them stealing more than $1 billion (USD). And the most popular hacking group, Lazarus, stole approximately $540 million worth of crypto on DeFi platforms and Ronin Bridge.
HSBC has a more negative perspective on crypto than the other banks. Quinn stated that a lot of unfavorable conditions make him not invest in crypto trades and crypto exchanges.
He stated that “I do worry about the sustainability of the valuations of crypto and I have done for a while. I am not going to predict where it will go in the future.”
Recently, Noel Quinn launched India’s economic reforms like GST and the digitalization of payment methods. He added that these new reforms will help to build start-ups in India as well. Recently, he collaborated with fintech and unicorns to expand their business.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.