The CEO of HSBC has just announced there are no plans to support trading in Bitcoin and other cryptocurrencies.
HSBC gives its stance on cryptocurrencies after Bitcoin fell nearly 50% from this year’s high. The main reason for this situation is China’s drastic measures to tighten Bitcoin mining and trading activities. The implication of Elon Musk through recent Tweets also caused the price of Bitcoin to plunge.
According to the Reuters, HSBC’s position contrasts with some rivals such as Goldman Sachs and UBS. A series of banks in the US are promoting plans to support customers to trade, buy, sell and manage cryptocurrencies through their existing accounts.
HSBC turns its back on the world’s most valuable cryptocurrency. Photo: Reuters.
“We do not consider Bitcoin as an asset class because of its volatile nature. If customers want to buy coins, that’s up to them, but HSBC does not promote cryptocurrencies as an investment portfolio within its business and management,” Quinn said.
“For similar reasons, we are not involved in stablecoins,” the HSBC CEO said, referring to digital currencies like Tether, which assigns its value to fiat money, such as USD.
On May 24, Bitcoin was trading at 36,387 USD/BTC, down almost 50% from the highest record 64,895 USD/BTC was established on April 14. The pressure on this coin increased after Tesla stopped accepting payments in Bitcoin.
However, Quinn believes in a central bank digital currency (CBDC), which is being developed by countries like the US and China.
“CBDC can facilitate international transactions, eliminate costs, operate transparently and have valuable attributes for long-term storage,” said HSBC CEO.
The bank is talking to several governments about its plans to develop a CBDC, including the UK, China, Canada and the UAE.
Bitcoin’s instability makes many major financial institutions cautious, including banks that have declared support for trading and managing cryptocurrencies.
A few days ago, a Goldman Sachs report on cryptocurrencies leaked. This giant believes that it is likely that the total market value of Ethereum will surpass that of Bitcoin.
(According to Zingnews)
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