Tesla CEO Elon Musk said Tuesday that the US government must avoid 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 down 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 if the US government should be involved in cryptospace regulation.
“I would say’do nothing’,” he said.
Tesla said it bought $ 1.5 billion worth of Bitcoin earlier this year. The value of these holdings surged to about $ 2.5 billion in the second quarter as the price of Bitcoin soared. After that, Bitcoin dropped along with other cryptocurrencies.
Musk, who frequently advertises support for various digital coins on Twitter, is bullish on the role of crypto in potentially reducing the “errors and latencies” of legacy money systems. But he admitted that cryptography does not have all the answers to social illnesses.
“I can’t say I’m a large cryptocurrency expert,” Musk said. “I think cryptocurrencies have some value, but that’s 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 launched stricter measures in its broader crypto crackdown, including an enhanced system for monitoring crypto-related transactions.
Mr Musk said the heavy hands were probably related to the country’s “serious power generation problem.”
“Some of that could actually be due to power shortages 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 may be playing that role,” he said.
At a higher level, the decentralized nature of cryptocurrencies can be a challenge for 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 the U.S. government should avoid cryptocurrency regulation
Source link Tesla CEO Elon Musk says the U.S. government should avoid cryptocurrency regulation