HSBC’s CEO, Noel Quinn, says they are negative about crypto’s future potential in banking. He also added that crypto is not a part of at least HSBC’s plans. Noel is worried about the “sustainability of the valuations of crypto.” This makes a lot of sense because, in this bear market, the total market cap of cryptocurrencies has already shrunk by more than 60%. It is not even less than $1 trillion at $955B.
HSBC bank is not getting into crypto
In a recent interview with CNBC-TV18, Noel talked about everything crypto. He gave his opinion on the current state of the industry, exchanges, trading, and many more. The HSBC CEO didn’t give his opinion or try to predict crypto’s future, but he is also not very optimistic about it. In fact, he admitted that HSBC bank is more bearish on crypto when compared to other financial institutions.
Noel explained his stance by saying that he views BTC as more of an asset than a payment medium. This is true for many investors as well because its usage for transactions hasn’t gone mainstream yet. Quin also said that it is difficult to position Bitcoin on a company’s balance sheet due to the huge volatility. This is why HSBC is not even promoting it as an asset class like other banks.
HSBC is also not quite sure about stablecoins. Yes, they have reserve assets backing them, but it depends on the organization behind the coin. It is also difficult to ascertain the truth behind these reserves and their accessibility. A good thing here is that the largest stablecoin, USDT, has recently started to become more transparent about its holdings and also stood the test of the bear market without any problems.
About HSBC bank
HSBC is a worldwide universal bank and financial holding corporation based in the United Kingdom. It was founded in 1865 in Hong Kong by Sir Thomas Sutherland. As of December 2021, it had $2.953 T in AUM, making it the biggest bank in Europe. Their assets under custody (AUC) at HSBC were $10.8 trillion, and assets under administration (AUA) were $4.9 trillion in 2021.
What are your thoughts as HSBC’s CEO says they are negative about crypto’s future? And do you think the bank is missing out on a lot of growth? Let us know in the comments below. And, if you found our content informative, do share it with your family and friends.