Appointment of Crypto-Critic Deals Blow to Hopes of China’s Crypto Policy Shift.
Pan Gongsheng, the current deputy governor of the People’s Bank of China (PBoC), is expected to become the next governor, according to unnamed sources cited in a recent Wall Street Journal report. This appointment signals a continuation of China’s anti-crypto stance under his leadership.
If Pan Gongsheng becomes the next governor of the People’s Bank of China (PBoC), his position as a top party official would give him more power than his predecessor, Yi Gang.
In China’s system, the top party official holds a higher rank than the administrative head of public entities, indicating the potential for increased influence over cryptocurrency-related policies.
Previously overseeing the crypto crackdown:
Pan Gongsheng, with an extensive background in China’s financial sector, notably served as the head of the State Administration of Foreign Exchange. His reputation as a strong critic of cryptocurrency stems from his leadership in the crackdown on crypto and oversight of the country’s fintech sector as the head of the Leading Group of Internet Financial Risks Remediation.
In late 2017, Pan Gongsheng made headlines with his prediction of Bitcoin’s demise, stating that he anticipated its eventual downfall.
In 2018, he expressed a more stringent stance, outlining the government’s plans to introduce regulations targeting various aspects of the crypto ecosystem, including settlement providers, market-makers, guarantors, peer-to-peer lending platforms, alternative trading platforms, and crypto wallets.
A setback for crypto relaxation in China:
Appointment of Pan as central bank’s new Party chief deals a blow to hopes of China’s crypto stance softening, contradicting expectations fueled by Hong Kong’s crypto ambitions.
Binance CEO CZ hailed a TV segment on Hong Kong’s crypto regulations as significant, suggesting a potential softening of China’s stance on cryptocurrencies.
Chinese crypto entrepreneur Justin Sun, founder of Tron, expressed optimism that the TV segment on Hong Kong’s crypto regulations could spark greater interest and curiosity in cryptocurrencies among the public.
Given the influence and reach of CCTV in the Chinese-speaking world, this could very well lead to an increased awareness and curiosity about cryptocurrencies, which, may fuel new entrants into the market. 🚀 https://t.co/lqow6ermqK
— H.E. Justin Sun å™å®‡æ™¨ (@justinsuntron) May 25, 2023
China economist David Qu from Bloomberg Economics stated that, based on his understanding, no governor of the People’s Bank of China (PBoC) would endorse or support Bitcoin, indicating a lack of expected support for the cryptocurrency in China.
David Qu also mentioned that the perspective of China’s mainland towards Hong Kong is typically that of an overseas market, rendering developments in Hong Kong irrelevant in influencing China’s stance on cryptocurrencies.Â
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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