London HSBC CEO Noel Quinn said the bank has no plan to start a cryptocurrency trading desk or offer digital assets to its customer due to volatility and lack of transparency. The bank is not promoting it as an asset class within its wealth management business.
Europe’s largest bank stance on cryptocurrencies comes as the world’s biggest and best-known. Bitcoin falls 50% from the year china cracked down on mining currency, and prominent Elon musk tempered his support.
Quinn’s stance contrasts with other major global investment banks such as Goldman Sachs, which relaunched its crypto trading desk.
“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 said.
“For a similar reason, we’re not rushing into stablecoins,” he said, referring to digital currencies such as Tether seek to avoid volatility typically associated with crypto by pegging their value.
However, HSBC’s CEO was optimistic about potential central bank digital currencies (CBDC’s) within the financial system.
“CBDC can facilitate international transaction in e-wallets more simply, they take out friction cost and they are likely to operate in a transparent manner and have strong attributes of stored value,” Quinn said.
HSBC talks to various governments about their CBDC initiatives, including countries like Britain, China, Canada, and United Arban Emirates. Quinn said.