The recent turbulent price movement in cryptocurrencies seems to offer ample opportunity for popular anti-crypto bank HSBC to reiterate its negative stance on virtual currencies.
In conversation with Reuters on Monday, CEO of HSBC, Noel Quinn, The bank is not interested in running a cryptocurrency trading desk or offering its customers crypto-related investment packages.
Quinn identified volatility as one of the main drivers behind the bank’s decision,TO despite the emerging trend of other major financial institutions announcing plans to open crypto investment opportunities to their clients.
Early May, Investment bank Wells Fargo announced plans to introduce a cryptocurrency investment product to large customersIn addition, other major US banks like Morgan Stanley and Goldman Sachs are at various stages of implementing institutional grade bitcoin funds for their clients.
Early May, New York Digital Investment Group has partnered with fintech group Fidelity National Information Services to provide a framework for U.S. lenders to provide cryptocurrency trading services to clients.
Addressing HSBC’s reluctance towards Bitcoin (BTC) and cryptocurrencies in general, Quinn said:
“I see Bitcoin more as an asset class than a payment instrument, with very difficult questions about how it should be valued on customer balance sheets because it is so volatile.”
HSBC’s CEO also examined stablecoinsThis calls into question the reputation of the issuer and the extent to which stable coins in circulation are covered by structured reserves.
However, Quinn expressed support for the central bank’s digital currencies and claimed that CBDCs could make cross-border payments easier.
As previously reported by Cointelegraph, HSBC has an excellent track record of anti-crypto attitudes when the bank blacklisted MicroStrategy stocks on its online trading platformAt that point, HSBC announced that the move was due to MicroStrategy’s huge investment in Bitcoin.
At the beginning of the year, The bank also prevented customers from returning profits from exchanging cryptocurrencies to their HSBC accounts.