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HSBC Speaks Stand w/ Regards To Cryptocurrency “Bitcoin”

HSBC No Plans To Offer Cryptocurrency “Bitcoin”

HSBC – Bitcoin is one of the most popular cryptocurrencies across the globe and the bank recently spoke its stand about it.

Nowadays, investments are not only in the form of businesses, properties, and priced possessions. Many individuals have also invested in cryptocurrencies or digital currencies. It is a digital asset that is made to be used as a medium in exchange – like the real money.

There are different cryptocurrencies nowadays and, undeniably, the most popular is Bitcoin. It was founded by Satoshi Nakamoto and it can be transferred from peer to peer even without intermediaries. The transfer is made possible by the bitcoin network.

Bitcoin was first released in January 2009. Then, only a few people knew about the cryptocurrency and many of them reportedly became the first individuals who became rich before of it. However, in the pursuit to get to a certain wealth, there are also risks.

HSBC on Bitcoin
Photo: Hindustan Times

Because of the risk, HSBC has no plans of offering Bitcoin as an investment to its clients. Based on a report on Reuters, the bank expressed that the said cryptocurrency is too volatile. It also stressed that it lacks transparency.

Based on the article, HSBC revealed its stand on Bitcoin after the cryptocurrency’s value dropped by almost 50% from the year’s high. The drop came after Tesla’s Elon Musk, the richest person across the globe, reversed its support on allowing Bitcoin for payment to the company he leads. Furthermore, China also cracked down on the mining of Bitcoin.

HSBC Chief Executive Noel Quinn expressed that the “volatility” of Bitcoin is the reason why their bank is not promoting it to their clients as an asset. Meanwhile, their clients have the liberty should they wish to engage in the said cryptocurrency as part of their wealth management.

With regards to stable coins like Tether which fixes its value to assets like United States dollars, HSBC is still in no rush to it. It is because of the same reason of volatility.

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