HSBC Says Tokenization is Better Than Speculation
HSBC is said to be exploring crypto cases and has shown interest in blockchain and crypto technology. Though it is known that Banks are not much willing to accept the growing surge in cryptocurrencies but the fact is that banks should realize that cryptocurrencies are here to stay.
The rise in cryptocurrencies and blockchain technology has affected banks and financial institutions the most. The hidden interest of global banking giants in blockchain technology is well known. Banks have been showing themselves as ignoring this innovative technology but the trend of these cryptos is gradually rising to be it massive adoptions of cryptocurrencies or uses of blockchain technology.
As per the reports, an official from HSBC highlighted that there is a real need for utility tokens created to enhance operations of firms offering digital services.
“There’s a use case when you have a token or currency that’s useful for a particular purpose, and it serves that need. But that is very different to if it’s pure speculation.”
The official who in charge HSBC’s digital strategy for both retail and asset management departments stated that the bank is quite wary of digital currencies like bitcoin because of their unpredictable nature and lack of real use cases. An influential figure at HSBC has also hinted that the possibility of HSBC joining the bitcoin bandwagon in the near future, can’t be entirely ruled out.
HSBC Bank plc is one of the largest banking and financial services giant in the world. The international network of HSBC comprises of around 7,500 offices in over 80 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
HSBC might be waiting for the price of bitcoin to stop fluctuating so much before it plans to adopt the world’s flagship cryptocurrency. Bitcoin has been consistently ranked number one among the other cryptocurrencies that exists. Though termed as a Bubble by many, the rising trend of adoption of cryptocurrencies by many has still continued.
A few months back, HSBC Holdings had completed its first scalable finance transaction powered by DLT, declaring that the famous technology can now be used extensively in the trade and finance industry. As a part of its blockchain integration initiative, HSBC is collaborating with Hong Kong’s banking regulator and other big banks including Standard Chartered PLC, to launch a DLT-based trade finance system probably in September 2018.
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