HSBC reaffirmed that it has no intentions to launch a cryptocurrency trading desk or offer Bitcoin as an investment option to its clients. According to the institution, the digital asset is too volatile and lacks transparency.
The current crypto market situation continues to be highly unstable, mainly fueled by China’s intentions to crack down on mining and trading with the primary digital asset.
As such, it comes as no surprise that another major institution has shared negative thoughts on the matter. Exclusive-HSBC CEO – Noel Quinn – revealed to Reuters that Bitcoin is not an attractive asset for the largest bank in Europe and that they have no plans to provide it within their wealth management business:
”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.”
Quinn also opined about stablecoins. Despite highlighting that they are backed by reserve assets, he also sees a few issues:
”Then you get to stablecoins which 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.”
HSBC’s stance against offering cryptocurrencies contrasts to major rival banking institutions such as Goldman Sachs and UBS, which explore ways to provide them as investment products to their customers.
Not long ago, the British bank restricted its customers from interacting with digital assets. According to the report from January 2021, HSBC blocked transactions to or from crypto exchanges as it takes a heavy-handed approach to Bitcoin.
The banking giant, though, became notorious in the recent past as it allowed fraudsters to transfer millions of dollars around the world in a typical Ponzi scheme. According to the BBC, the files showed the investment scam started soon after the bank was fined a record $1.9 billion in the U.S. over money laundering.
The leaked documents also alleged many other prominent institutions of similar dodgy dealings such as JP Morgan Chase, Deutsche Bank, Barclays Bank, and Standart Chartered.
Featured Image Courtesy of TheGuardian
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