- Noel Quinn, said in an interview that Cryptocurrency is not a part of HSBC’ strategy for the future.
- The bank is not so-confident about digital assets, hence it will not offer any kind of services related to crypto in the near future.
Noel Quinn, CEO of the largest European Bank, HSBC, recently shared his thoughts in an interview with CNBC-TV18, on cryptocurrencies and said that their bank will not offer any service that will be in support or related to the Cryptocurrencies. He added “As a bank, we’re not getting into the crypto world, crypto trading, crypto exchanges.”
Quinn Explains The Nature of Cryptocurrencies
Quinn further said in the interview “I do worry about the sustainability of the valuations of crypto and I have done for a while. I’m not going to predict where it will go in the future.” The bank will not trade into the crypto space due to its undefined nature and in terms of stability and suitability, that most of the customers are looking for.
He also discussed why HSBC is not supporting cryptocurrencies. As in May 2021 he told to Reuters, “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.” The volatility of Bitcoin made him not to support or promote it as an asset class.
At the same time, he also stated “we are not rushing into stablecoins,” for the same reason. Stablecoins may have some reserve backing to address the issues with stored value, but it also depends on the sponsoring organisation as well as on structure and accessibility of the reserve.
It must be noted that HSBC may not be interested in the cryptocurrencies, but it bought a plot of land within the Metaverse of The Sandbox and marked its virtual presence.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.