The traditionally existing gap between banks and decentralized virtual assets seems to be a thing of the past as a leading bank is now gearing up to educate its users about crypto and blockchain. HSBC, a major player in the banking sector has added information about Bitcoin, blockchain technology and the crypto market as a whole in the latest edition of its monthly newsletters. Even as some banking sectors in countries such as India continue to adopt an anti-crypto stance, it is heartening to note that some key international players are taking a more positive approach.
In the June issue of HSBC’s newsletter Liquid, the bank has added CNBC-compiled data on cryptocurrencies and the underlying blockchain technology.
Liquid, which basically serves an educational role by keeping users updated about the latest development in the financial services sector, has a rather wide reach. As a result, it is hoped that it will have a significant impact on the awareness of its wide base of users.
According to the newsletter, cryptocurrency is defined as:
“A decentralized digital currency which uses encryption—the process of converting data into code—to generate units of currency and validate transactions independent of a central bank or government.”
As for blockchain, it is defined as:
“A form of distributed ledger technology that maintains records of all cryptocurrency transactions on a distributed network of computers, but has no central ledger.”
As the newsletter details, this wondrous technology can ensure a high degree of transparency for a wide range of fields, that go far beyond only financial services.
HSBC is currently the seventh largest bank in the world and the largest European bank and its latest newsletter also included details on other new forms of technologies within the fintech space. Open banking, regtech and insurtech were some of the terms that were covered.
Such a move is likely to have a positive impact on the crypto and blockchain literacy of users and this can be quite beneficial, especially at a time when cryptocurrencies are increasingly in the limelight for their recent price hikes.
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