HSBC will not launch its own cryptocurrency trading desk due to high volatility and lack of transparency, the bank's CEO, Noel Quinn, told Reuters. Quinn says the bank has no interest in the cryptocurrency market given the volatility, which is why the bank is not promoting cryptocurrencies as an asset class within its wealth management business.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
"For similar reasons we are not rushing into stablecoins," he added.
While it remains unknown, how stablecoins can be volatile, Quinn says he views bitcoin (EXANTE: Bitcoin) as more of an asset class than a payments' vehicle.
"Then you get to stablecoins which 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," he noted.
Quinn's comments come after Chinese Vice Premier, Liu He, said that authorities should impose more regulation on the mining market in order to protect the financial system. As iHodl earlier reported, HSBC prohibited its customers from buying MicroStrategy (MSTR) shares due to its large investments in bitcoin. As of press time, MicroStrategy hodls over 92,000 BTC.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.