HSBC, the largest European bank with $ 3 trillion in assets, is skeptical of cryptocurrency, fostering the development of central bank digital currencies (CBDCs).
Noel Quinn, CEO of HSBC Group, wrote an article titled “New Forms of Digital Money Can Drive Growth,” which outlines the company’s commitment to adherence to the CBDC concept as it offers a transparent legal tender designed to avoid the “many risks” associated with cryptocurrencies. and stack coins.
The article, published on Tuesday, argues that global CBDC efforts such as the Chinese digital yuan are “a new form of digital money,” while private money itself, including forms of stablecoins, “is nothing new. “. The existing funds of commercial banks are privately established and widely used. But commercial bank money is rooted in central bank money and is tightly regulated, reflecting its systemic importance, ”Quinn wrote.
The CEO went on to say that stack coins and cryptocurrencies will require regulation that matches the degree of associated risk as the industry continues to grow. He added: “Until then, projects that have proven good enough to achieve price stability and that are consistent with current methods of preventing financial crime are likely to be useful as a reliable and secure method of payment.”
Expressing his skepticism about cryptocurrencies, Cowen stressed that HSBC will continue to deepen its cross-border payments experience and develop global central bank currencies. He noted that the bank has been actively working with several central banks, including the UK, France, Canada, Singapore, mainland China, Hong Kong, Thailand and the UAE, to contribute to their CBDC projects.
HSBC is one of the largest banking institutions in the world and is considered one of the largest buyers of the debts of troubled Chinese development company Evergrande, along with investment giant BlackRock. Unlike BlackRock, which has been actively moving to cryptocurrency lately, HSBC has become one of the biggest skeptics of Bitcoin (BTC) and the crypto industry in general.
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In August, HSBC was among UK banks that decided to cut Binance’s payment channels due to “potential risks” for customers. HSBC previously blacklisted shares in business intelligence company MicroStrategy as part of a custom policy prohibiting customers from using cryptocurrency.
Cowan’s comments came against the backdrop of increased control by global financial regulators over private stack coins. On Tuesday, Gary Gensler, chairman of the US Securities and Exchange Commission, once again called for stricter regulation of cryptocurrencies, calling coin stacks “poker chips” at Wild West crypto casino.