HSBC has confirmed its bitcoin and cryptocurrency stance as a large number of major banks are offering crypto services. CEO Noel Quinn says that HSBC sees bitcoin as an asset class rather than a payment vehicle, but the bank is not in a hurry to provide cryptocurrency investments for customers.
HSBC Confirms Crypto Currency
HSBC CEO Noel Quinn said the bank had “no plans to launch a cryptocurrency trading desk” or offered cryptocurrency as an investment to customers, Reuters reported on Monday.
Quinn was quoted as saying: “Given the volatility we are not in bitcoin as an asset class, if our customers want to be there then they certainly are, but we do it within our wealth management business Are not publicized as an asset class… for similar reasons, we are not in a hurry to stabilize stocks. “
The news outlet reported that the HSBC executive explained that he suspects cryptocurrency partly because of who owns them and problems with their ready convertibility are difficult to assess, the news outlet reported. Quinn further shared:
I see bitcoin as a more asset class than a payment vehicle, there are very difficult questions on how to value it on the balance sheets of customers because it is so volatile.
He continued: “Then you get stable stocks that have some reserve support behind them to address stored value concerns, but it depends on who the sponsoring organization is as well as the structure of the reserve and Access. “
Explanation by the CEO of HSBC regarding cryptocurrency came after China banned financial institutions from providing services related to crypto transactions and Repeated Its cryptocurrency crackdown which was announced back in 2017. China is the key to HSBC’s development strategy.
HSBC has not been compatible with bitcoin or any cryptocurrency. In April, the bank Changed Its policy prohibits customers from buying shares of companies holding bitcoins such as MicroStrategy.
Meanwhile, other major banks are planning to launch or launch crypto services including Morgan Stanley, Goldman Sachs, UBS, DBS and Citigroup.
What do you think about HSBC’s stance on bitcoin and cryptocurrency? Let us know in the comments section below.
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