- HSBC’s CEO recently opened up about 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 will not offer cryptocurrency services. “I am concerned about the sustainability of crypto valuations,” the CEO said, highlighting HSBC’s more negative stance on cryptocurrencies than other banks.
Institutional investors are losing interest in the digital currency due to its constant volatility and other risks. Moreover, the British government recently warned its citizens against using cryptocurrency.
The CEO recently stated in an interview with CNBC-TV18 that the company has no plans to invest in cryptocurrency. The organization flatly refused to consider Cryptocurrency as a potential investment.
As a bank, we do not enter the world of crypto, cryptocurrency trading, cryptocurrency exchange.
Quinn emphasized that cryptocurrencies are totally unpredictable, saying, “I am concerned about the sustainability of cryptocurrency valuations, and I have done so for a while.” Adding that he did not want to speculate “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 cryptocurrencies and the like due to their extreme volatility and the increasing cyber threats related to the crypto space.
More than half of all cyber attacks specifically targeted cryptocurrencies, with nearly $1 billion stolen. A notorious hacking group known as Lazarus has managed to obtain more than $540 million in digital assets from Ronin Bridge and other DeFi networks. For this reason, HSBC does not include it in its asset allocation forms.
Moreover, Cowen opened up about his stance on the stablecoin saying, “For similar reasons, we are not rushing into the stablecoin.”
He explained that depending on the stablecoin governing organization, reserve structure and accessibility, concerns about stored value may or may not be fully addressed.
Despite not being involved in cryptocurrency, 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 around the world to interact with global financial services firms and sports communities in the Sandbox metaverse.
HSBC’s chief executive officer says there are no crypto plans, citing volatility concerns that first surfaced in the issuance of coins.