- At the California Code Conference on Tuesday, Musk said the US government should wash its hands of crypto regulation.
- The tech billionaire also said China’s stringent crypto regulation is driven by electricity outages and the government feels threatened by decentralization.
Tesla CEO Elon Musk on Tuesday said the United States government should eliminate attempts to regulate the crypto market. This he said in response to a question on whether the US government should be involved in crypto regulation. Musk said at the Code Conference in Beverly Hills, California;
It is not possible to, I think, destroy crypto, but governments can slow down its advancement,
I would say, ‘Do nothing.’ Just let it fly.
His electric vehicle company Tesla had earlier this year acquired Bitcoin worth $1.5 billion. As crypto prices swelled in the second quarter, this value rose to $2.5 billion. However, Bitcoin has since shaved off its price and so has the rest of the crypto market.
Musk has on multiple occasions expressed his liking for various digital assets including Bitcoin and Dogecoin. With Bitcoin miners opting for cleaner energy sources, the tech entrepreneur now thinks the digital asset is a lot eco-friendlier. He also touts his son, X, as a strong DOGE holder. The Tesla carmaker has, however, not resumed accepting Bitcoin as a mode of payment following criticism of its energy expenditure.
Elon Musk and government crypto regulations
Yesterday, the tycoon said crypto is a potential reducer of the “error and latency” plaguing the legacy money systems. Nonetheless, he acknowledged that digital assets are not a panacea, that is, a solution to all of society’s ills.
“I wouldn’t say that I’m a massive cryptocurrency expert,” said Musk.
I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah.
Additionally, Musk discussed China’s role in crypto mining and regulation. China’s central bank, last week, spelt out tougher regulations barring crypto transactions. According to Musk, such actions are due to the country’s “significant electricity generation issues.”
Part of it may be due to electricity shortages in many parts of China,
A lot of South China right now is having random power outages, because the power demand is higher than expected. Crypto mining might be playing a role in that.
Even more, the ruling Communist Party may feel that its regime is belittled by the decentralized nature of cryptocurrencies. He further added;
I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government and they don’t like that, is my guess.
After Friday’s crypto market crash following China’s announcement, Bitcoin and other digital assets are now showing signs of recuperation. Bitcoin, as of this writing, was trading at $42,540, up 1.5 percent in the day. Bitcoin’s 24-hour gains have been reflected in the wider crypto market as our data shows.