Anti-crypto bank HSBC will not join the bandwagon of major banks offering Bitcoin and crypto investment products to customers and clients.
May 25, 2021, | AtoZ Markets – HSBC bank has no plans to launch a cryptocurrency trading desk or offer the digital currencies as an investment to clients, because they are too volatile and lack transparency, said its chief executive, Noel Quinn.
The position of Europe’s largest bank on crypto comes as bitcoin has plunged nearly 50% from its peak for the year, after China cracked down on mining the currency and its prominent advocate Elon Musk. he moderated his support for the digital currency.
This distinguishes it from rivals such as Goldman Sachs, which Reuters reported in March that it had restarted its cryptocurrency trading desk, and UBS which, according to other outlets, is exploring ways to offer digital currencies as an investment product.
“Given the volatility, we are not in bitcoin as an asset class. If our clients want to be there, of course they can be, but we are not promoting it as an asset class within our wealth management business,” Quinn said.
“For similar reasons, we are not rushing to buy stablecoins,” he said, referring to digital currencies like Tether, which seek to avoid the volatility typically associated with cryptocurrencies by pegging their value to assets like the dollar.
At the time of writing, Bitcoin was trading at $37,401 on Tuesday, up 0.43% in the last 24 hours.
Pressure on the currency intensified after Musk, the billionaire owner of Tesla and supporter of the cryptocurrency, reversed his stance that the electric vehicle maker accepted bitcoin as a means of payment.
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