The Chinese Communist Party has reportedly appointed a Bitcoin (BTC) skeptic as party secretary of the central bank, making him eligible to become the next governor.
Chinese leaders have appointed central bank vice governor Pan Gongsheng as party secretary of the People’s Bank of China (PBOC), the Communist Party’s top post, according to a new report from the Wall Street Journal.
Pan joined the PBOC in 2012 and became China’s foreign exchange regulator in 2015. The report says Pan is likely to be appointed governor of the bank after his promotion.
Pan also heads the Leading Group of Internet Financial Risks Remediation, a group that “restricts the use of cryptocurrency and the regulation of financial technology companies in China.”
Pan has made critical comments about Bitcoin in the past.
At a 2017 event, Pan reportedly said, “If you sit by the river and watch, one day the corpse of Bitcoin will float in front of you.” He also spoke in support of China’s decision to crack down on Bitcoin trading.
Pan secured the appointment because of his international background and the expectation that he can have a productive relationship with global central bank governors, the report said.
Eswar Prasad, former head of the China Department of the International Monetary Fund and now a professor of economics at Cornell University, says:
“Pan has the technical competence and skills to navigate the PBOC through difficult terrain in supporting economic growth, promoting market-oriented reform in the financial sector and managing risk in the banking system. These challenges are, of course, multiplied by the political constraints under which the PBOC operates.” The report highlights that Pan’s appointment comes at a time when “China’s economy, struggling with slowing growth, rising debt and an aging population, is at a critical juncture.”
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