- HSBC CEO opened up on the bank’s negative stance on Crypto.
- The bank revealed that they have no plans to enter the crypto industry whatsoever.
- The CEO highlighted volatility and security risks as potential deterrents.
According to CEO Noel Quinn, banking giant HSBC would not provide cryptocurrency services. The CEO said, “I do worry about the sustainability of the valuations of crypto,” highlighting HSBC’s notably more negative stance on cryptocurrencies than that of other banks.
Institutional investors are losing interest in digital currency as a result of its continued volatility and other risks. Furthermore, the British government has recently warned its citizens against using cryptocurrency.
The CEO recently stated in an interview with CNBC-TV18 that the corporation has no plans to invest in cryptocurrencies. The organization flat-out refused even to consider Cryptocurrency as a potential investment.
Quinn said:
As a bank, we’re not getting into the crypto world, crypto trading, crypto exchanges.
Quinn emphasized that cryptocurrencies are extremely unpredictable, saying, “I do worry about the sustainability of the valuations of crypto, and I have done so for a while.” Adding that he doesn’t want to speculate on “where it will go in the future.”
Quinn is skeptical about the prospects for digital assets in the current market and customer demographic.
Financial institutions have lost faith in Bitcoin and similar cryptocurrencies due to their extreme volatility and the upsurge in cyber threats related to the crypto space.
More than half of all cyberattacks have specifically targeted cryptocurrencies, with nearly $1 billion stolen. A notorious hacking group known as Lazarus was able to obtain over $540 million in digital assets from Ronin Bridge and other DeFi networks. For this reason, HSBC does not include it in its asset allocation models.
Furthermore, Quinn opened up about his stance on stablecoins stating, “For similar reasons, we’re not rushing into stablecoins.”
He clarified that depending on the stablecoin’s governing organization and the reserve’s structure and accessibility, the concerns regarding stored value may or may not be fully addressed.
Despite not being involved with cryptocurrencies, the banking giant is betting on the emergence of the metaverse. The financial giant partnered with The Sandbox in March to join the metaverse market. The partnership will allow virtual communities worldwide to engage with global financial services companies and sports communities in The Sandbox metaverse.
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