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Is the lifting of the ban wishful thinking? Pan Gongsheng appointed as the Party Secretary of the People's Bank of China, who predicted the death of Bitcoin in 2017

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Is the lifting of the ban wishful thinking? Pan Gongsheng appointed as the Party Secretary of the People

In recent times, Hong Kong has been actively promoting cryptocurrency regulation and the development of Web3. This has raised further anticipation among cryptocurrency businesses and investors about the possibility of China lifting its cryptocurrency ban imposed since 2021. However, with speculations that a Bitcoin skeptic may become the new governor of the People's Bank of China, the likelihood of the ban being lifted has decreased once again.

Pan Gongsheng Promoted as Party Secretary of PBOC

According to an announcement by the People's Bank of China (PBOC) after a leadership meeting on July 1st, Pan Gongsheng has been appointed as the Party Secretary of the People's Bank of China, replacing Guo Shuqing, and Yi Gang has been relieved of his position as the Deputy Party Secretary of the People's Bank of China.

Yi Gang, who is currently the Governor of the central bank, had also been serving as the Vice Chairman of the Economic Committee of the National Committee of the Chinese People's Political Consultative Conference since March this year. Pan Gongsheng's promotion is seen as a precursor to him taking over as the Governor of the central bank in the near future.

Who is Pan Gongsheng?

Pan Gongsheng holds a Ph.D. in Economics from Renmin University of China and has studied at both the University of Cambridge and Harvard University. He joined the China Securities Regulatory Commission in 1990, engaging in securities regulation and policy-making, and became a member of the Communist Party of China in April 1999.

His other experiences include:

  • 2000-2002: Director of the Banking Supervision Department of the China Banking Regulatory Commission, responsible for bank supervision and risk management.

  • 2002-2011: Assistant Chairman and Vice Chairman of the China Securities Regulatory Commission, involved in securities regulation and policy-making.

  • 2011-2014: Chairman of the China Banking Regulatory Commission, responsible for bank supervision and financial system reform.

  • Since 2014: Vice Governor and Deputy Party Secretary of the People's Bank of China, overseeing monetary policy, financial markets, and financial regulation.

  • 2015: Also appointed Director of the State Administration of Foreign Exchange.

Pan Gongsheng's 2017 Speech: Bitcoin Will Eventually Collapse

In December 2017, as the Vice Governor, Pan Gongsheng attended a forum where he praised China's firm stance on cryptocurrency regulation after the country banned ICO fundraising on September 4th, causing a sharp decline in the crypto market. He stated:

If over 80% of global Bitcoin trading and ICO fundraising were still happening in China today, what would the situation be like? China has taken resolute measures; otherwise, the world media would all point their fingers at China.

He also likened Bitcoin to a speculative frenzy, similar to past crazes like the Dutch tulip mania and the dot-com bubble, quoting a work by Eric Pichet, a professor at KEDGE Business School, titled "Bitcoin: Speculative Bubble or Future Value Manifestation?":

Sitting by the river, one day, the corpse of Bitcoin will float past you.