HSBC’s CEO Explains Why Crypto Is Not in the Banking Giant’s Future

According to CEO Noel Quinn, HSBC won't be offering crypto services. CEO Noel Quinn stated that HSBC is more hostile to crypto than other banks. He also stressed: "I do concern about the sustainability and the valuations crypto strong>

CEO of HSBC says that HSBC will not enter crypto

Noel Quinn (HSBC chief executive) spoke about cryptocurrency stance during an interview with CNBC TV18 last week. He confirmed:

We are not a bank that is interested in crypto trading or crypto exchanges.

The HSBC chief stressed that cryptocurrencies are too volatile and said: "I do worry regarding the sustainability of the valuations crypto and I have for a while. It's impossible to predict the future.

Quinn explained why HSBC was more negative about crypto than other banks. He said:

I was skeptical about the product's suitability for most consumers today. HSBC's negative attitude towards crypto is why it's different from other banks.

Quinn stated to Reuters in May 2013: "I consider bitcoin more of an asset than a payment vehicle. There are very difficult questions about how it should be valued on the balance sheet of clients, because it is so volatile."

He said: "Given bitcoin's volatility, we aren't into it as an investment class… We aren't promoting it within our wealth management company."

Quinn stated that stablecoins are not being rushed into. He said that they do have some reserve backing to address stored value concerns. However, it all depends on the sponsoring organization and the structure of the reserve.

HSBC Canada notified clients in April that its crypto policy had been changed. It stated that it would no longer facilitate the purchase or exchange of virtual currency products. Clients could not buy shares in Microstrategy, MSTR-US through HSBC Invest direct.

What did you think of Noel Quinn's comments about cryptocurrency by HSBC CEO? Comment below.

By: Kevin Helms
Title: HSBC’s CEO Explains Why Crypto Is Not in the Banking Giant’s Future
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Published Date: Fri, 16 Sep 2022 02:30:28 +0000

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