HSBC CEO supports CBDCs against crypto and stablecoins
The CEO of HSBC bank defended Central Bank Digital Currency adoption against the raised issues on StableCoin & Crypto associated risks with the adoption.
In the present time adoption of the blockchain technology based central bank digital currency and crypto are increasing. But with the increasing demands, there are issues which are increasing against this technology because of the possible risks associated with blockchain, experts believe. In recent months, many regulators and lawmakers raised their issues in the potential risks associated with crypto and stablecoins.
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To defend the Central Bank Digital Currency ( CBDCs) adoption, Noel Quinn, CEO of HSBC group, shared his point of view in favour of CBDCs only.
Quinn penned an article with the title New forms of digital money could spur growth. Through the article, Quinn tried to explain those advantages which are associated with the CBDCs.
Quinn said that Central Bank Digital Currency is a new form of the fiat money in the digital form e.g Digital Yuan, which is totally different from the StableCoins. while StableCoins are the form of private money and have many risks also over CBDCs.
“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”
Quinn further asserted that StableCoins like assets needed perfect regulation to avoid any kind of associated risks.
Quinn also asserted that HSBC group will do oversight research on CBDCs for the use of CBDCs in the global cross border payments.
Quinn also took the reference of those countries’ central banks which are working on the CBDCs development and use in the cross border payment system. Like the United Kingdom, France, Canada, Singapore, mainland China, Hong Kong, Thailand and the United Arab Emirates.
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