HSBS CEO said that the institutions would avoid the crypto market amid a lack of transparency and volatility concerns. Noel Quinn reported to Reuters that they will not consider BTC as an asset due to the extreme volatility that the market has for now. However, the bank will allow its customers interested in crypto to undertake the activities. Keep in mind this comes after the Bitcoin market is experiencing challenges to rise after falling from year high prices.
HSBC declared that it would no longer promote Bitcoin dealings. Cryptocurrencies such as Ethereum and Bitcoin surged to new highs in the past few months. That was after institutional investors joined the market in high numbers. You undoubtedly know what happened afterward.
Goldman Sachs revived its crypto trading unit, whereas sources propose JPMorgan plans to suspend the BTC fund.
Different financial bodies remain skeptical about Bitcoin investments. Natwest declared in the past month that they are not interested in clients that deal with cryptocurrencies due to the high caution needed to operate in the markets.
Today’s HSBC announcement finds the crypto market bruising due to the weekend declines. BTC declined by almost 50% after hitting its highest mark, $64,895, in April.
The declining pressure in the cryptocurrency universe came after Elon Musk, a crypto icon, suspended using BTC in their vehicles transaction in the name of environmental concerns.
Quinn remains skeptical due to the inadequate transparency surrounding cryptocurrencies, especially when assessing their possible owners.
The CEO said that he views BTC as an asset class rather than a payment option. Its volatility makes it challenging to price it on customers’ balance sheets.
The executive also announced that the company would not hurry to adopt stablecoins. Keep in mind that stablecoins try to prevent volatility waves by attaching their price to objects such as the USD.
From the remarks, it is with no reservation that HSBC will not consider jumping into the crypto market any time soon.
Most companies are doubtful when it comes to cryptocurrency dealing due to the current market nature, volatility.
Do you think that more institutions will avoid the market due to the increased fluctuations? You can comment on what you feel below.