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Elon Musk doubled down on the potentials of digital assets in helping to correct the “error and latency” in the traditional financial systems as we have it today, he believes cryptocurrencies alone do not guarantee a road to paradise.
Elon Musk, the Chief Executive Officer (CEO) of American electric vehicle and clean energy company Tesla Inc (NASDAQ: TSLA) believes the United States government should have no hand in regulating the digital currency ecosystem. Speaking at the Code Conference in Beverly Hills, California, Musk said “It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement.”
The Tesla boss has grown to become a major influencer in the cryptocurrency ecosystem, a role that became heightened since the company purchased Bitcoin (BTC) worth $1.5 billion back in February this year. As a major thought leader in the nascent world of crypto, Musk said he would advise the government to “Do Nothing” when responding on stage to a question from New York Times columnist Kara Swisher. She asked whether the US government should be involved in regulating the crypto space.
While the iconic CEO doubled down on the potentials of digital assets in helping to correct the “error and latency” in the traditional financial systems as we have it today, he believes cryptocurrencies alone do not guarantee a road to paradise.
“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.”
Tesla CEO Musk on China’s Incessant Crackdowns
The Tesla CEO also shared his thoughts on the role of the Chinese government as it is always seeking new measures to crackdown on the digital currency ecosystem. Twice this year, the Chinese market watchdogs have issued a quit notice to crypto miners in the country, with a more recent revival of its anti-crypto stands last week, a move that often represses the price growth of assets that make up the crypto industry.
Drawing on these events, Musk said the move by China to clear its coast of crypto-related activities cannot be unconnected to the electricity generation issues the country is currently facing.
“Part of it may actually be due to electricity shortages in many parts of China,” said Musk. “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.”
The position Musk took with respect to the caution on governments getting involved in the digital currency ecosystem may take a wide detour from other leaders in the industry. Many are imploring the government to not just get involved, there is a growing demand on such market regulators as the Securities and Exchange Commission (SEC), as well as the Commodity Futures Trading Commission (CFTC) to help provide regulatory clarity for the main players in the cryptospace.
While Musk seems to differ in opinion, he believes there may be a significant drawback from authorities as crypto seeks to reduce the powers of centralization which governments will, by all means, try to avoid.
“I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government,” Musk said. “They don’t like that.”