HSBC join the ranks og banks interested in cryptos, but BTC/USD as quiet as a mouse
|- BTC/USD stays in a tight range, capped by 38.2% Fibo.
- HSBC’s Josh Bottomley says the bank is cautiously interested in cryptocurrencies.
Bitcoin is changing hands at $7.450 during early Asian hours, marginally higher both on a daily basis and since the beginning of the day. The digital currency No.1 gained over 30% in less than a week, but stumbled at $7,500 resistance, which proved to be a hard nut to crack for the bulls.
HSBC is another big bank interested in cryptocurrencies and the innovative technology they are based on. In the last few days, the company announced the decision to join blockchain-based trade finance platform in Hong Kong.
Josh Bottomley, HSBC’s Global Head of Digital confessed that the bank is exploring the area and the opportunities offered by the new type of assets.
“We are cautious looking into this area,” he said in the interview with Forbes. 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.”
Bottomley explained that volatility is an important factor to consider before asset can be added to the list of investment products.
“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.”
This position resonates with the warning the Bank of England sent to Britain’s biggest banks in June. The regulator urged them to be prudent against the “reputational risks” of cryptocurrencies.
BTC/USD, 1-hour chart
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