- Musk says that the US government should “do nothing” regarding regulating cryptocurrencies.
- He added, “I don’t think it’s like the second coming of the Messiah, which some people seem to think”.
- He said that China has forbidden crypto use because the country doesn’t like their target of decreasing the power of centralization.
Tesla’s CEO, Elon Musk, said that governments should not impose regulations on cryptocurrencies, as their intervention could hold back growth.
He claimed in an interview at the Code conference in Los Angeles that “It is not possible to, I think, destroy crypto, but governments can slow down its advancement”.
In an interview with Kara Swisher of the New York Times, Musk was asked what the US government should do regarding regulating crypto and the industry.
He confirmed that they should do nothing. They should “Just let it fly.”
Gary Gensler, the head of the US Securities and Exchange Commission, warned that without proper oversight, digital assets could lose public trust.
While Musk has criticized crypto regulation, some industry leaders believe it will provide investors with more protection and better transparency. Coinbase is working to create a regulatory framework and present it to authorities. This framework will allow for the operation of decentralized networks. Mark Cuban, the billionaire investor, has also stated that crypto regulation built around existing fraud laws isn’t a bad decision.
In an interview with Nick Swisher, Musk, who co-founded the payment service provider PayPal, said that he hopes that cryptocurrencies could help error and latency making the financial system more secure. He added “I wouldn’t say that I’m some massive cryptocurrency expert. There’s some value in cryptocurrency. I don’t think it’s like the second coming of the Messiah, which some people seem to think.”
The Tesla CEO said that China’s decision to ban crypto-related transactions was made due to the Communist Party’s concerns about the threat of digital assets to its grip.
He explained “It would appear that they don’t love cryptocurrency. I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government, and they don’t like that. That’s my guess.”
China’s energy crisis could have also led to the government’s tougher measures. According to him, these tough measures were taken 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.
In February, Tesla’s CEO said that the electric vehicle maker had made a $1.5 billion bet on Bitcoin, and declared that it will accept the cryptocurrency in payment for cars. However, three months later, the company stopped accepting Bitcoin as payment for its cars due to its energy-intensive effects on the environment.
The “Musk effect” caused a major stir in the crypto world earlier this year, as every subsequent tweet from Tesla’s CEO sent its own token prices either skyrocketing or tumbling.
Swisher asked him whether his tweets’ influence on crypto prices is a good thing. Musk answered, “If it goes up, I suppose it is.”