Tesla CEO Elon Musk said on Tuesday that the US government should refrain from trying to regulate the crypto market.
“I don’t think it’s possible to break the code, but it’s possible for the government to slow that progress,” Musk said at a code conference in Beverly Hills, California.
Musk answered questions from New York Times columnist Kara Swisher on stage. She asked whether the US government should get involved in cryptospace regulation.
“I’d say ‘don’t do anything’,” he said.
Tesla said it had bought $1.5 billion worth of bitcoin earlier this year. The value of these holdings increased to about $2.5 billion in the second quarter as the price of bitcoin increased. After that, bitcoin fell along with other cryptocurrencies.
Musk, who frequently advertises support for various digital coins on Twitter, is optimistic on crypto’s role in potentially reducing the “errors and latency” of the older money system. But he acknowledged that cryptography does not have all the answers to social ills.
“I can’t say that I am a big crypto expert,” Musk said. “I think cryptocurrencies have some value, but this is not the second coming of the Messiah.”
Musk on Chinese Crypto Crackdown
Musk also addressed China’s role in cryptocurrency mining and regulation.
Last week, China’s central bank introduced stringent measures in its widespread crypto crackdown, including an advanced system to monitor crypto-related transactions.
Mr Musk said the heavy hand was probably related to the country’s “serious power generation problem”.
“Some of it may actually be due to power outages in many parts of China,” Musk said. “Currently, much of southern China is experiencing random power outages due to higher-than-expected electricity demand.”
“Cryptocurrency mining can play that role,” he said.
At a high level, the decentralized nature of cryptocurrencies could pose a challenge to the Chinese government.
“I think cryptocurrencies are basically aimed at reducing the power of centralized government,” Musk said. “They don’t like it.”
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Tesla CEO Elon Musk Says US Government Should Avoid Cryptocurrency Regulation
Source Link Tesla CEO Elon Musk Says US Government Should Avoid Cryptocurrency Regulation