- Pan Gongsheng has been appointed as the Party Secretary of the People’s Bank of China (PBOC), raising speculation about his potential future role as the next governor.
- Pan Gongsheng is known for his critical stance on Bitcoin and previously expressed concerns about the risks of virtual currencies.
The Chinese Communist Party recently appointed Pan Gongsheng as the Party Secretary of the People’s Bank of China (PBOC), the country’s central bank. According to reports from the South China Morning Post (SCMP) and The Wall Street Journal, this appointment positions Pan Gongsheng as a likely candidate for the future position of PBOC governor. Pan Gongsheng’s party position typically holds more priority than government positions, suggesting a high possibility of his ascension to the role of governor.
The current PBOC governor, Yi Gang, has held the position since 2018 and secured his reappointment at the National People’s Congress in March. However, SCMP cited a statement from the Communist Party Central Committee, reporting that Yi Gang is expected to step down in the near future.
This personnel change also involves the departure of Guo Shuqing, the party secretary of the PBOC, and his deputy, who is currently held by Yi Gang. Pan Gongsheng’s appointment is seen as a move to maintain continuity in China’s financial policy. Additionally, if Pan Gongsheng becomes the PBOC governor, it would transition from a dual leadership structure to a single leader, enhancing the central bank’s authority.
Pan Gongsheng has an extensive background in China’s financial sector, having served in prominent roles at state-owned banks before becoming the Deputy Governor of the People’s Bank of China in 2012. He has also held the position of Director of the State Administration of Foreign Exchange (SAFE), responsible for managing foreign currency operations. With his rich experience in the financial field and academic background from prestigious institutions like the University of Cambridge and Harvard University, Pan Gongsheng is considered to possess the necessary skills to steer the People’s Bank of China through challenging situations.
Notably, Pan Gongsheng is known for his critical views on Bitcoin. In 2017, he reportedly stated,
“If you sit by the river long enough, you will see the body of Bitcoin floating by.”
He also expressed concerns about the lack of regulatory oversight for cryptocurrencies, suggesting that without proper restraint, they could pose risks. As the former head of the Internet Finance Risk Remediation Group, he played a role in cracking down on cryptocurrency use and overseeing regulations for domestic fintech companies.
With Hong Kong taking a supportive stance toward the crypto industry and implementing new regulations for virtual currency exchanges, there could be a divergence in approaches between Hong Kong and mainland China. While Hong Kong has embraced the crypto industry, mainland China typically views it as an overseas market, making the developments in Hong Kong less influential domestically. It is worth noting that David Qu, an economist at Bloomberg, stated that he doesn’t expect the Chinese central bank governor to support Bitcoin.
The appointment of Pan Gongsheng and his potential future role as the PBOC governor may have significant implications for the cryptocurrency landscape in China. Market participants and observers will closely monitor how his views on Bitcoin and digital assets will shape the country’s regulatory framework in the future.