March 22, 20185min1233

Bank of China’ New Governor with new stance on Bitcoin

President Xi Jinping has decided to change the course of China’s economic policy. In order to do so, the president has decided to make room for fresh faces in the economic team. Yi Gang will be the new governor of the People’s Bank of China, which is the nation’s Central Bank. In the past, he has already given some very favorable comments about bitcoin and blockchain towards the end of 2013. Stating: ”it gives ordinary people the freedom to participate.”

 


 

Does Yi Gang like Bitcoin?

The 60-year-old banker has positively commented about bitcoin and cryptocurrencies in the past as well in the current state of the market. This is relatively odd from the bankers themselves, since the majority have more negative comments, especially towards bitcoin. 

On March 19th, Chinese president Jinping decided to appoint Mr. Yi Gang as the new governor of the People’s Bank of China (PBOC).

Untill this new position Yi Gang has been working as a deputy governor and is seen as a liberal governor by some experts. Mr Yi Gang has also spoken positively about bitcoin, calling it ”inspiring” or ”enlightening”.

This is a mixed signal to the markets, that have been used to hear hard restrictions from China. True, the ex-governor of the PBOC has a different point of view compared to the one of Yi Gang.

Zhou Xiaochauan, ex-governor of the PBOC, had this to say:

We don’t like speculative cryptocurrency products since it is not a good thing to give people an illusion of getting rich overnight.

Eswar Prasad, former China head of International Monetary Fund (IMF) said that Yi has everything what it needs to carry out financial market reforms, liberalization and other effective regulations. At the moment, China has completely banned ICOs and cryptocurrency exchanges in the country.

 

Could Bank of China Change its Position?

The new head of the PBOC will be a pro-free market advocate. It seems that president Xi Jinping is trying to modify the economy for the next years.

Up until now, China has been very strict when regulating the crypto market. But the new designation at the PBOC Could change the way in which China considers ICOs and cryptocurrencies.

In the past, Zhou Xiaochaun, now ex-governor of the Bank of China, explained that China does not recognize bitcoin and cryptociurrencies. furthermore, he explained that Bitcoin and youan trading is not supported by the central Bank.
He explained during a press conference:

We don’t like speculative cryptocurrency products since it is not a good thing to give people an illusion of getting rich overnight,” 

But even when the ex-PBOC governor gave such definitions about cryptocurrencies and bitcoin, the country is working on its own digital currency. These are mixed signals for the markets. Are digital currencies and blockchain technology bad for the financial system… or it depends whether they are controlled by a central authority or not?

 

China’s influence in the crypto environment

China is a country with the most influence on this evolving market. This does not come as a surprise since the culture and its people are heavily interlaced with technology. Its influence has been even documented with several bans on Bitcoin. At the end of 2013 Chinese ban pushed it in deep red with a near 80% drop which lasted until the end of 2015. The market with each ban reacts less, as it is becoming clearer that this first cryptocurrency is bigger than just one nation.  

 


 

With these new developments, it is hard to imagine the year of 2018 to be any less great as it was 2017. Although the start came as a cold shower, it refreshed the market and with its growing technology adaptation and new applications on blockchain technology the future is looking bright.

More from the author.

 


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