In echoes that reverberate throughout the digital asset market, hopes for an eased stance on cryptocurrencies within China have seemingly ground to a halt. The raincloud over this optimism emanating from the appointment of a well-known crypto-sceptic, Pan Gongsheng, as the Communist Party’s leading figure within the People’s Bank of China (PBoC).
Revered publication Wall Street Journal has reported that a promotion to Governor of the PBoC might be in line for Pan. Should this ascend to reality, his capacity would supersede that of his predecessor Yi Gang. This is rooted in China’s hierarchical system – where the top party official is typically more influential than the administrative head in state-run organisations.
Previous opposition of Gongsheng to crypto cannot be understated. His past role as head of Internet Financial Risks Remediation group involved sizable crackdowns on crypto. Back in 2017, he notoriously asserted the death of Bitcoin, declaring that all would soon witness Bitcoin’s demise. His anti-crypto sentiments strengthened further in 2018, with talk of implementing regulations to shutter crypto settlement providers and equivalents, provoking serious concern among blockchain advocates.
For those anticipating a shift in China’s crypto sentiment – largely on the back of Hong Kong’s race to becoming a crypto haven – Pan’s new possible role is a significant setback. Many, including Binance CEO Changpeng Zhao (CZ), and Chinese crypto entrepreneur Justin Sun, have previously maintained that such an evolution was inevitable. Yet, this increasingly appears to be wishful thinking.
David Qu, a China economist at Bloomberg Economics, reinforces this sentiment, reiterating that PBOC’s stance is unlikely to turnaround in favour of Bitcoin. Hong Kong’s ambitions hold little bearing, he maintains, as mainland China generally considers Hong Kong an international market. The sheer vehemency of Pan’s previous remarks might make even the most bullish crypto evangelist question the likelihood of China becoming softened towards digital currencies.
So, we could very well be facing a significant barrier in the future global integration of cryptocurrencies. Only time will reveal the full extent of China’s crypto approach. For many, the hope for a collective global embrace of crypto technologies has hit a roadblock. However, it remains to be seen whether China’s stance foretells a major global pivot against crypto, or merely a bumping road in the larger trajectory of global blockchain integration.
Source: Cryptonews
