HSBC, the largest European depository financial institution with total assets of $three trillion, maintains a skeptical stance on cryptocurrency while promoting the development of central bank digital currencies (CBDC).

HSBC Group CEO Noel Quinn penned an commodity titled "New forms of digital money could spur growth," in which he outlined the house's delivery to supporting the concept of a CBDC, as it provides transparent legal tender designed to avoid "many risks" associated with cryptocurrencies and stablecoins.

Released on Tuesday, the piece argues that global CBDC efforts like the Chinese digital yuan are the "new class of digital money," while private coin itself, including forms of stablecoins, "is zero new." "Current commercial banking company money is privately created and widely used. Just commercial bank money is anchored past central banking concern money and closely regulated, reflecting its systemic importance," Quinn wrote.

The CEO went on to say that stablecoins and cryptocurrencies volition require regulation that is equivalent to the extent of associated risks every bit the industry adoption grows farther. "Fifty-fifty and then, but designs that are sufficiently well anchored to achieve price stability, and correspond with current approaches to financial crime prevention, are likely to be useful every bit a reliable and prophylactic means of payment," he added.

While expressing skepticism over crypto, Quinn emphasized that HSBC will go on deepening the feel of cross-border payments and the global CBDC development. He noted that the banking company had been actively working with many cardinal banks, including those in the United Kingdom, French republic, Canada, Singapore, mainland China, Hong Kong, Thailand and the United Arab Emirates to contribute to their CBDC projects.

HSBC is i of the world's largest banking institutions, reportedly being ane of the biggest debt buyers of troubled Chinese real estate developer Evergrande aslope investment giant BlackRock. In dissimilarity to BlackRock, which has been actively moving into crypto recently, ​​HSBC has emerged as one of the biggest skeptics of Bitcoin (BTC) and the crypto industry in general.

Related: Stablecoins are avails — Not currencies, says ECB president

In Baronial, HSBC was amid British banks that opted to cut payment channels to Binance over "concerns virtually possible risks" to its customers. HSBC previously blacklisted the stock of business intelligence firm MicroStrategy as part of its user policy prohibiting customers from interacting with crypto.

Quinn'due south remarks come amongst the growing scrutiny over private stablecoins by global financial regulators. On Tuesday, United States Securities and Substitution Commission Chair Gary Gensler once once more called for tougher crypto regulation, calling stablecoins "poker chips" at the "Wild Due west" crypto casino.