UK’s biggest and world’s 7th largest bank, HSBC is cautiously looking into cryptocurrencies, however, denies to be interested right now that could change in future. Given the way banking giants like Goldman Sachs and SBI holdings are embracing crypto and a new report stating UK to be well-placed to become a leader in crypto and blockchain, the interest might be coming sooner than later.
World’s 7th largest bank “Cautiously” looking into Crypto
One of the world’s largest and UK’s top banking and financing services organization, HSBC seems to get attracted to cryptocurrencies after all. HSBC is not a complete stranger to the world of cryptocurrency as it has already launched a blockchain pilot in May. Moreover, the bank is also planning to join Standard Chartered along with 21 other banks for a blockchain-based trade finance platform.
The world’s seventh largest bank is reportedly cautiously interested in crypto market and already looking into it.
Josh Bottomley, the Global Head of Digital at HSBC, in an interview with Forbes, revealed, “We are cautious looking into this area.”
Before managing the digital strategy for both the retail and wealth management department of HSBC, Bottomley was leading the display advertising arm of Google.
Talking about the approach HSBC is taking towards crypto, he shares,
“There’s a use case when you have a token or currency that’s actually useful for a particular purpose, and it serves that need.”
As for the leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), Bottomley emphasizes the non-interest part for now, “But that is very different from if it’s pure speculation. Right now we’re not interested in that at all…but it might change.”
Apparently, the volatility is the primary concern as he clarifies,
“One of the criteria we use is if an asset class is showing incredible volatility up and down. For the vast majority of our customers, that makes it an inappropriate saving or investment vehicle.”
UK well-placed to become a leader in Crypto & Blockchain
According to the latest report, UK is in a strong position to become a leader in blockchain technologies and crypto economy. According to the analysis of the Big Innovation Centre, DAG Global and Deep Knowledge Analytics, the availability of the required resources combined with government support will help it become a global hub.
The CEO of DAG Global, Sean Kiernan,
“The UK is a major global financial hub and in recent years has become a fintech leader as well. At the same time, it is starting to demonstrate significant potential to become a leader in blockchain technologies and the crypto economy.”
“The gap between the two worlds of traditional finance and crypto economy remains, but in the coming years we can expect this to lessen and eventually disappear.”
For now, the bank is only cautiously exploring the crypto market, but this part alone is a potential step and shows their interest despite claiming to be not interested right now.
Names like Goldman Sachs and SBI Holdings have already made their move. Given the fact that banking and financial giants all over the world are working on embracing bitcoin and cryptocurrencies, in order to compete and maintain its position in the world finance market, HSBC has to sooner or later make the potential step forward.