In a surprising move, China’s ruling Communist Party has appointed Pan Gongsheng, a well-known skeptic of bitcoin and cryptocurrencies, as the top Party official of the People’s Bank of China (PBOC). According to sources cited by The Wall Street Journal, Pan is expected to eventually rise to the position of governor, replacing the retiring Yi Gang.
Pan, who previously served as the deputy governor at China’s central bank, brings a wealth of experience in the financial sector. He joined the PBOC in 2012 and notably led the central bank’s efforts to regulate internet financial risks, including the supervision of cryptocurrency firms and cracking down on the use of cryptocurrencies within the country.
Known for his critical stance on the industry, Pan has been vocal about his skepticism toward cryptocurrencies. At an event in 2017, he famously remarked, “If you sit by the river and watch, one day the corpse of Bitcoin will float in front of you,” as reported by local media.
Additionally, Pan referenced an article by French scholar Eric Pichet, who labeled the bitcoin bubble as “the latest incarnation of crazy speculation.” With Pan’s appointment, hopes of a crypto revival in China have been dampened, despite more positive signals emerging from Hong Kong.
The decision to appoint Pan Gongsheng to such a prominent position within the PBOC underscores China’s cautious approach to cryptocurrencies. The country has a history of implementing strict regulations on digital currencies, with a particular emphasis on curbing financial risks and maintaining stability in the financial system.
While some proponents of cryptocurrencies may be disappointed by this news, it is crucial to recognize that China’s stance on the industry does not necessarily imply a complete rejection of blockchain technology. The country has shown a keen interest in exploring the potential of blockchain for various applications, including supply chain management, government services, and digital identity verification.
As Pan Gongsheng assumes his new role, his appointment signals a continued emphasis on regulatory measures and risk management within China’s financial sector. It remains to be seen how his tenure will shape the country’s approach to cryptocurrencies and whether any adjustments or amendments to existing regulations will be implemented.
