Shifting Tides: Central Bank Shake-Up Dampens Hopes for Cryptocurrency Policy Reversal in China

Pan Gongsheng is "likely" to become the next governor of the People's Bank of China (PBoC) after being promoted to the top Communist Party official at the bank.

The People’s Bank of China (PBoC) has appointed Pan Gongsheng, a known crypto-critic, as the Communist Party’s top official. Pan Gongsheng is set to become the next governor of the People’s Bank of China (PBoC), gaining significant authority. This appointment has crushed hopes that China’s anti-crypto stance could soon change. Pan’s promotion to the top party official at the bank will outrank the administrative head of public entities, making him the most powerful figure in the Chinese central bank.

Mitigating Risks: Pan Gongsheng’s Efforts in Crypto Regulation

Pan Gongsheng’s notable positions include leading the State Administration of Foreign Exchange and the Internet Financial Risks Remediation Group. Moreover, he is known for his crypto-critical stance, famously predicting the death of Bitcoin in 2017 and calling for the government to implement regulations to shut down crypto settlement providers, market-makers, guarantors, peer-to-peer lending vehicles, alternative trading platforms and crypto wallets in 2018. Pan Gongsheng has focused on safeguarding China’s financial sector and mitigating the risks associated with cryptocurrencies.

Potential Impact on Hong Kong’s Crypto Industry with Pan Gongsheng’s Appointment

Pan Gongsheng’s appointment as Party chief and potential PBOC governor is a setback for cryptocurrency advocates. In addition, Binance CEO Changpeng Zhao (CZ) referred to a TV segment on Hong Kong’s crypto regulations as significant. Pan is known for advocating a ban on cryptocurrency trading and ICOs, reflecting his strict stance on cryptocurrencies. His appointment may negatively impact the crypto industry in Hong Kong, as China is likely to maintain strict regulations.

Optimism among Crypto Enthusiasts: Justin Sun’s Perspective

The People’s Bank of China (PBOC) recently aired a segment on Bitcoin on its official television channel. This has led to speculation that the Chinese government may be warming up to cryptocurrencies. However, David Qu, a China economist at Bloomberg Economics, has stated that this is unlikely to be the case. He believes the PBOC governor doesn’t support Bitcoin and that Hong Kong’s situation is irrelevant to the mainland. Despite this, the segment has sparked optimism among crypto enthusiasts, with Justin Sun believing it could increase awareness about cryptocurrencies.

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Kassidy Florette
Kassidy followed her friends to buy her first Bitcoin in 2015, has been participating in various projects since 2019 as a marketing communication lead. Her knowledge and passion brings her in as a contributor.