China’s Crypto Embrace Halted: New President Elected

• China’s crypto mining ban in 2021 and the subsequent total ban on cryptocurrencies in the country have led to speculation about whether China will re-embrace the crypto industry.
• Pan Gongsheng, a high-ranking representative of the Communist Party in the People’s Bank of China (PBOC), has been appointed to a key role, raising doubts about China’s stance on cryptocurrencies due to his known opposition to them.
• Despite rumors of China softening its stance on crypto, the appointment of a crypto critic like Gongsheng has quashed these speculations.

China’s Cryptocurrency Stance: A Change in the Wind?

In 2021, China’s decision to ban crypto mining sent shockwaves around the globe. This was followed by a total ban on cryptocurrencies in the country. Two years later, the crypto industry is abuzz with speculation about whether China might reconsider its stance and re-embrace the crypto ecosystem.

Appointment Raises Doubts

The implementation of these bans was overseen by the People’s Bank of China (PBOC), the country’s central bank. Recently, Pan Gongsheng, a high-ranking representative of the Communist Party, was appointed to a key role in the PBOC. This appointment is significant as it is seen as an indication that Gongsheng could be the future head of the PBOC. However, Gongsheng is known for his opposition to cryptocurrencies, which has raised doubts about China’s future stance on this issue.

Known Crypto Critic

Gongsheng’s stance on cryptocurrencies has been clear. Like many Chinese government officials, he has been vocal in his opposition to cryptocurrencies. In a 2017 speech, he expressed his support for the bans on Bitcoin and other cryptocurrencies, even suggesting that the “corpse of Bitcoin” would eventually float down a river. His appointment to a key role in the PBOC has effectively quashed rumors that China might be considering a softer stance on cryptocurrencies.

Contradictions in the Market

David Qu, an economist who worked at the PBOC for eight years, spoke to Bloomberg about the situation. He stated that no PBOC president would ever defend or support Bitcoin. He also pointed out the inconsistencies in the market, particularly in Hong Kong, which mainland China views as an overseas market. Despite these contradictions and the ongoing speculation, the appointment of a known crypto critic like Gongsheng seems to indicate that China’s hardline stance on cryptocurrencies is unlikely to change in the near future.