The CEO of HSBC stated that the bank is not interested in offering Bitcoin to its clients due to volatility and other factors.
Noel Quinn, the chief executive of HSBC, one of the largest banks in Europe, said in an interview for Reuters that cryptocurrencies lack stability and transparency. Due to these issues, it’s not in their plans to start a digital currency 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.”
According to Quinn, a reason that makes cryptocurrencies very hard to work with is the lack of information on the people who own them. He also added that Bitcoin’s volatility makes it rather complicated to be valued to the clients’ balance sheets.
“I view bitcoin as more of an asset class than a payments vehicle, with very difficult questions about how to value it on the balance sheet of clients because it is so volatile.”
The CEO of HSBC also expressed his thoughts about stablecoins:
“Stablecoins do have some reserve backing behind them to address the stored-value concerns, but it depends on who the sponsoring organization is plus the structure and accessibility of the reserve.”
The only types of digital currencies that the CEO of HSBC sees as a suitable asset are CBDCs. He believes that Central Bank Digital Currencies can help in the evolution of the financial system.
“CBDCs can facilitate international transactions in e-wallets more simply, they take out friction costs, and they are likely to operate in a transparent manner and have strong attributes of stored value.”