Banking giant HSBC will not offer crypto services, according to CEO Noel Quinn. Noting that HSBC is more negative on crypto than other banks, the exec stressed, “I worry about the sustainability of crypto valuations.”
HSBC won’t get into crypto, says CEO
HSBC Chief Executive Noel Quinn spoke about his bank’s stance on cryptocurrency in an interview with CNBC-TV18 last week. He confirmed :
As a bank, we don’t enter the world of crypto, crypto trading, crypto exchanges.
Stressing that cryptocurrencies are too volatile, the HSBC chief said: “I worry about the sustainability of crypto valuations and have for a while. I’m not going to predict where it will go in the future.
Quinn then explained why HSBC is more negative on crypto than other banks. He stated:
As a product, I questioned its relevance to many consumers in the market today. This is why HSBC is more negative on crypto than other banks.
In May last year, Quinn told Reuters: “I see bitcoin as more of an asset class than a payment vehicle, with very tough questions about how to value it on customers’ balance sheets. because it is so volatile.”
He added, “Given the volatility, we’re not into bitcoin as an asset class…We’re not promoting it as an asset class within our wealth management business.”
Regarding stablecoins, Quinn said at the time, “For similar reasons, we don’t rush into stablecoins.” He explained that stablecoins “have some reserve behind them to address stored value issues, but it depends on who the sponsoring organization is, and the structure and accessibility of the reserve.”
In April last year, HSBC Canada informed customers that its crypto policy had changed, stating that it would not facilitate the purchase or exchange of products related to virtual currencies. For example, clients could no longer purchase shares of Microstrategy (MSTR-US) through HSBC Invest Direct.
What do you think of HSBC CEO Noel Quinn’s comments on cryptocurrency? Let us know in the comments section below.
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