Elon Musk suggests US government should avoid crypto regulations

  • Musk suggested US government to stop controlling crypto market
  • The decentralised character of cryptocurrencies may pose a challenge to the Chinese government at a higher level

Tesla CEO Elon Musk warned on Tuesday that the US government should avoid attempting to control the cryptocurrency market. He doesn’t think it’s possible to destroy crypto, but it is possible for governments to stifle its progress, Musk stated at the Code Conference in Beverly Hills, California.        

Musk was answering on stage to a question from a journalist at the summit. The journalist inquired as to whether the US government should be involved in crypto regulation.

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He replied, I would advise doing nothing.

Tesla announced in January that it has purchased $1.5 billion in bitcoin.As bitcoin prices rise, the value of these holdings has increased to around $2.5 billion in the second quarter. Bitcoin, like other cryptocurrencies, has since lost value.

Musk, who has repeatedly shown his support for various digital currencies on Twitter, is optimistic on the role of cryptocurrencies in reducing errors and latency in conventional financial systems. However, he admitted that cryptocurrencies don’t have all the answers to society’s problems.

Musk stated, he cannot say that he is a massive Bitcoin specialist. He thinks bitcoin has some value, but he wouldn’t call it the Second Coming of the Messiah.

Musk’s view on China’s role in crypto

Musk also spoke about China’s role in cryptocurrency mining and regulation. China’s central bank announced harsher steps in its broader crypto crackdown last week, including beefed-up infrastructure to track crypto-related transactions.

The heavy hand, Musk added, is most likely due to the country’s severe electrical generation challenges.

Musk speculated that part of it could be due to electrical stress in many parts of China. Random power disruptions are happening across most of South China right now due to higher-than-expected electricity demand.

Crypto mining could be a factor, he speculated. The decentralised character of cryptocurrencies may pose a challenge to the Chinese government at a higher level.

Musk explained that cryptocurrency is primarily intended to reduce the power of a centralized government.

South African born American, Musk co-founded electronic payment firm PayPal and formed SpaceX. He is also the CEO of Tesla Inc. Elon oversees all aspects of the company’s electric vehicles, battery products, and solar energy products, including product design, engineering, and global manufacture.

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Andrew Smithhttp://thecoinrepublic.com
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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