China’s anti-crypto stance seems unlikely to change anytime soon, as a known crypto-critic has been appointed as the Communist Party’s top official at the People’s Bank of China (PBoC). Pan Gongsheng, the current deputy governor of the bank, is expected to become the next governor. This appointment would give him more power than his predecessor, Yi Gang, as the top party official outranks the administrative head of public entities in China.
Pan Gongsheng has a history of being critical of cryptocurrency. He previously served as the head of the Leading Group of Internet Financial Risks Remediation, which is responsible for cracking down on crypto and overseeing China’s fintech sector. In 2017, he famously predicted the death of Bitcoin and stated that there was nothing left to do but watch its demise. In 2018, he made more hawkish comments about crypto, stating that the government would implement regulations to shut down various crypto-related entities.
This appointment is a setback for those who believed that China was softening its approach to crypto, particularly due to Hong Kong’s ambition of becoming a crypto hub. Binance CEO Changpeng Zhao (CZ) viewed a TV segment on mainland China’s CCTV about Hong Kong’s crypto regulations as a significant development. Chinese crypto entrepreneur and Tron founder Justin Sun also believed that the segment could lead to increased awareness and curiosity about cryptocurrencies.
However, David Qu, a China economist at Bloomberg Economics, refutes these claims. He states that no PBoC governor would support Bitcoin based on his knowledge. Qu believes that what happens in Hong Kong is irrelevant to the mainland, as Hong Kong is viewed as an overseas market by China.
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It appears that China’s strong stance against cryptocurrencies is likely to continue, with Pan Gongsheng’s appointment as the central bank’s new Party chief and potentially as governor. This news comes as a disappointment to those who hoped for a shift in China’s policy towards crypto. Despite Hong Kong’s efforts to become a crypto hub, it seems unlikely that China will change its stance on cryptocurrencies anytime soon.
The appointment of Pan Gongsheng reinforces China’s commitment to cracking down on crypto and regulating the fintech sector. It sends a signal to the global crypto community that China remains steadfast in its opposition to cryptocurrencies. The country’s strict regulations and bans on crypto-related activities have made it challenging for businesses and investors in the crypto industry to operate in China.
China’s anti-crypto stance has had a significant impact on the global crypto market. The country’s crackdown on crypto-related activities, such as initial coin offerings (ICOs) and cryptocurrency exchanges, has caused prices to plummet and has led to increased uncertainty in the market. Many crypto businesses and investors have been forced to explore other jurisdictions that are more crypto-friendly.
Despite China’s harsh crypto policies, there is still interest and demand for cryptocurrencies within the country. Chinese investors and tech-savvy individuals continue to find ways to access and trade cryptocurrencies, often through overseas platforms. There is also growing interest in blockchain technology and its potential applications in various industries.
The crypto landscape in China remains complex and ever-changing. While the appointment of Pan Gongsheng suggests that the country’s anti-crypto stance will continue, it is important to monitor any potential shifts in policy or regulations. The global crypto community will be watching closely to see how China’s stance on cryptocurrencies evolves in the coming years.
