China’s central bank appointment dampens hopes for crypto-friendly policy

Recent changes at China’s central bank have diminished expectations of a potential relaxation in the country’s ban on digital asset trading.

The appointment of Pan Gongsheng as the Communist Party’s top official at the People’s Bank of China (PBOC) suggests policy continuity at the institution, which declared all cryptocurrency-related transactions illegal in 2021.

Pan’s appointment, seen as a step towards potentially becoming the PBOC president, has reminded industry executives of the risks associated with anticipating a shift in China’s stance on cryptocurrencies.

Pan had previously made skeptical remarks about Bitcoin, stating it would eventually face demise.

The People’s Bank of China did not provide immediate comments on Pan’s views regarding cryptocurrencies or the likelihood of changes in the country’s digital asset policies.

Chinese officials outside the central bank have criticized Bitcoin while the government focuses on developing the digital yuan.

Crypto industry figures have projected varying narratives, with some suggesting that Hong Kong’s pro-crypto direction could lead to a loosening of China’s ban.

However, the appointment of Pan Gongsheng reinforces the notion of policy continuity, dampening hopes for more crypto-friendly regulations in China.

Despite some individuals in China seeking alternatives to traditional investments like real estate and stocks, crypto activity on the mainland remains relatively low compared to previous peaks.