LONDON: HSBC has no plans to launch a cryptocurrency trading desk or offer the digital coins as an investment to customers, because they are too volatile and lack transparency, its Chief Executive Noel Quinn told Reuters.
Europe's biggest bank's stance on cryptocurrencies comes as the world's biggest and best-known, Bitcoin, has tumbled nearly 50 per cent from the year's high, after China cracked down on mining the currency and prominent advocate Elon Musk tempered his support.HSBC's stance also contrasts with rival banks such as Goldman Sachs, which Reuters in March reported had restarted its cryptocurrency trading desk.
"For similar reasons we're not rushing into stablecoins," he said, referring to the digital currencies that seek to avoid the volatility associated with typical cryptocurrencies by pegging their value to assets such as the US dollar.Bitcoin traded at US$34,464 on Monday , down nearly 50 per cent in just 40 days from its year high of US$64,895 on Apr 14.
Pressure on the currency intensified after the billionaire Tesla Chief Executive and cryptocurrency backer Musk reversed his stance on Tesla accepting Bitcoin as payment.
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