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Tesla CEO Elon Musk says U.S. government should avoid regulating crypto


Tesla CEO Elon Musk on Tuesday said the U.S. government should steer clear of trying to regulate the crypto market.

Musk stated at the Code Conference, Beverly Hills, California, that while it was impossible to destroy crypto (I think), it is possible for governments slow down its progress.

Musk answered a question by Kara Swisher (New York Times columnist), on the stage. She wanted to know if the U.S. government was interested in the regulation of the cryptocurrency space.

He said, “I would answer, Do nothing.’

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Tesla said early this year that it had purchased $1.5 billion worth of bitcoin. The value of those holdings swelled to about $2.5 billion in the second quarter as bitcoin prices surged. Since then, bitcoin has fallen along with many other cryptocurrency.

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Musk, who has frequently touted his support for various digital coins on Twitter, is bullish on the role of crypto in potentially reducing the “error and latency” in the legacy money systems. He acknowledged, however that cryptocurrency doesn’t provide all answers for society’s problems.

Musk said that he wouldn’t claim to be a huge cryptocurrency expert. Musk said that while I think cryptocurrency has some value, I don’t believe it is the Messiah.

Musk on China’s crypto crackdown

Musk also addressed China’s role in crypto mining and regulation.

Last week, China’s central bank spelled out tougher measures in its wider crypto crackdown, including souped-up systems to monitor crypto-related transactions.

Musk stated that the “significant problems with electricity generation” in China are likely to be the reason for the government’s heavy handed.

Musk stated that some of this may have to do with electricity shortages across China. Because the demand for power is greater than anticipated, there are random outages in South China.

He said that crypto mining could be a factor in this.

The decentralized nature of cryptocurrency may pose a problem for China’s government at a higher level.

Musk stated that cryptocurrency was fundamentally designed to reduce the power of centralized governments. Musk said, “They don’t like that.”

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