HSBC CEO Noel Quinn Says No to Bitcoin

HSBC, one of the largest investment banks worldwide, is not planning to promote Bitcoin within its wealth management business.

According to the latest report published by Reuters, HSBC has no plans to launch a Bitcoin trading desk. “Given the Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term, 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,” Noel Quinn, CEO of HSBC, told Reuters.

The latest announcement by HSBC highlights a different view regarding Bitcoin as rival bank Goldman Sachs recently restarted its cryptocurrency trading desk. Additionally, Wells Fargo, the US-based financial services giant, announced last week that the bank is planning to offer cryptocurrency services to its rich clients.

During the interview with Reuters, Quinn mentioned that the bank has no plans to rush into stablecoins. Quinn termed Bitcoin as an asset class and mentioned that it is extremely difficult to value the world’s largest cryptocurrency due to its volatility.

Bitcoin Correction

The price of BTC experienced extreme volatility in the last few days due to announcements from Tesla and China. The world’s most valuable digital currency touched a low of nearly $31,000 on Sunday, its lowest level since January 2021. Bitcoin volatility triggered massive liquidations across different trading platforms in the last 7 days.

HSBC CEO mentioned that BTC’s high volatility and a lack of transparency are major concerns for institutions. “I view Bitcoin as more of an asset class than a Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term vehicle, with very difficult questions about how to value it on the balance sheet of clients because it is so volatile,” Quinn added.

Bitcoin price has stabilized around the $35,000 level after the recent correction. As of writing, BTC has a market cap of more than $680 billion. BTC’s crypto market dominance has increased significantly in the last few days. Bitcoin now accounts for nearly 46% of the total crypto market cap.