One of the World’s largest banking services, HSBC, will not be offering or providing crypto services, said its CEO, Noel Quinn.
HSBC is More Negative on Crypto Than Other Banks
Noel Quinn, the chief executive of HSBC, in an interview with CNBC-TV18, he discussed the bank cryptocurrency’s stance last week. “As a bank, we’re not getting into the crypto world, crypto trading, crypto exchanges,” said Quinn.
He also talked about why the bank is more negative toward crypto than other banks, “As a product, I questioned its suitability for many of the consumers in the marketplace today. So that’s why HSBC is more negative on crypto than other banks.”
The Cryptocurrency is Too Volatile
He stressed that the cryptocurrencies are too volatile, adding “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.”
Last year, Quinn said to Reuters that “I view bitcoin as more of an asset class than a payments vehicle, with very difficult questions about how to value it on the balance sheet of clients because it is so volatile.”
He also said that “Given the volatility, we are not into bitcoin as an asset class … We are not promoting it as an asset class within our wealth management business.”
On the other hand, for stablecoin, Quinn stated that for similar reasons they were not rushing into stablecoin as he explained that the stablecoin “do have some reserve backing behind them to address the stored value concerns, but it depends on who the sponsoring organization is, plus the structure and accessibility of the reserve.”
Clients were notified by HSBC Canada in April that the bank’s crypto policy had changed, and it would not facilitate the purchase or exchange of products related to virtual currencies.
For instance, through HSBC InvestDirect, Microstrategy (MSTR-US) shares could no longer be purchased by clients.