HSBC CEO backs central bank digital currency (CBDC) development. While the bank has not been very supportive of decentralized cryptocurrencies, they have been positive about centralized digital tokens.
In a recent article, HSBC Group CEO Noel Quinn published an article titled New forms of digital money could spur growth. In the article, he had been supportive of creating a centralized digital currency. He advocates that CBDCs have a distinct utility as they help avoid unnecessary risks that come along with crypto stablecoins in particular.
Quinn notes that China’s efforts to create a digital Yuan is a positive development. He argues that private money is not a new concept and therefore, creating a CBDC only furthers the idea. “Current commercial bank money is privately created and widely used. But commercial bank money is anchored by central bank money and closely regulated, reflecting its systemic importance.”
Despite supporting CBDCs, HSBC CEO Quinn doesn’t hold the same opinion of cryptocurrencies. He has been sceptical over the use, potential and future of cryptocurrencies. While many other conventional banking institutes are actively endorsing cryptocurrencies, HSBC has been sitting on the fence. They have not had a policy dedicated to releasing crypto-focused products.
HSBC is amongst the largest banking institutes in the world. Though they have been sharing their ideas with crypto and the recent developments, the bank is yet to come clear on where they stand with crypto.