Crypto

Cryptocurrencies: Elon Musk Advocates ‘Let It Be’ In The Face Of Regulatory Attempts

While many American elected officials are impatient with regulation of the fledgling cryptocurrency sector, Elon Musk, Tesla’s capricious boss, takes the doxa against the grain as he usually does. “Don’t do anything. Let it be,” the South African chief proposed in substance to the US government at the “Code Conference”, which brings together players from the technology sector in Beverly Hills. A stance that stands in stark contrast to the “Wild West”, described by Gary Gensler, the head of the SEC (Securities and Exchange Commission) before US senators to characterize the absence of laws in the decentralized world of cryptocurrencies,

“It is not possible to destroy cryptocurrencies, but it is possible that governments slow their progress,” he added, while specifying that he does not consider himself a “great expert” in this matter. The statement also echoes Washington’s desire, as part of Joe Biden’s gigantic post-Covid “infrastructure law” plan, to integrate the transactions of these assets under the control of the US tax authorities (IRS), in relation to with conventional financial products.

However, Elon Musk enjoys a strong influence on the price of these digital assets based on blockchain technology. First, there is bitcoin, the oldest of the cryptocurrencies whose volatile price influences those of other assets that also have the promise of building an Internet of currencies, outside the traditional banking system and without intermediaries.

In February, automaker Tesla reignited the flames of the market by buying $ 1.5 billion in bitcoin and announcing that its customers could pay in bitcoin. He made a radical change a few weeks later, stating that bitcoins were no longer accepted for the sake of preserving the environment. Before finally reopening this possibility.

“He is not a second messiah”

As a business leader (Tesla, SpaceX), Elon Musk takes a position according to his interests. But regularly, he provides strong support for cryptocurrencies by stating, for example, that they allow “increasing the power of the individual over government.”

“I think there is value in cryptocurrencies, but I don’t see a second messiah like some people,” he weighed however Tuesday.

Also, given that China has just made the resounding decision to outlaw all cryptocurrency transactions, Elon Musk believes that the US government should not get involved in regulating cryptocurrencies, which are gaining popularity among retail investors. and the new decentralized financial companies.

“I imagine that the fundamental purpose of cryptocurrencies is to reduce the power of centralized governments, and they don’t like that,” Elon Musk joked about China.

More and more cryptocurrency platforms are offering services similar to traditional banks, a trend that worries regulators.

Faced with this competition that cryptocurrencies and stablecoins (private and decentralized currencies on which GAFA are reflecting in particular), the The Bank for International Settlements (BIS) is also urging countries’ central banks to come up with their own alternative.

Faced with competition from Bitcoin, the BIS and central banks strike back

(With AFP)

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