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Tesla CEO Elon Musk Says US Government Should Avoid Regulating Cryptocurrencies

Tesla CEO Elon Musk said Tuesday that the US government should avoid trying to regulate the crypto market.

“It is not possible, I believe, to destroy cryptocurrencies, but it is possible for governments to slow down their progress,” Musk said at the Code conference in Beverly Hills, California.

Musk was responding onstage to a question from New York Times columnist Kara Swisher. He asked if the US government should be involved in regulating the crypto space.

“I would say, ‘Don’t do anything,'” he said.

Tesla said earlier this year that it bought $ 1.5 billion in bitcoin. The value of those holdings rose to around $ 2.5 billion in the second quarter as bitcoin prices soared. Since then, Bitcoin has fallen, along with other cryptocurrencies.

Musk, who has often touted his support for various digital currencies on Twitter, is optimistic about the role of cryptocurrencies in potentially reducing “error and latency” in existing monetary systems. But he admitted that cryptocurrencies do not have all the answers to the ills of society.

“I wouldn’t say I’m a great cryptocurrency expert,” Musk said. “I believe that cryptocurrencies have some value, but I would not say that it is the second coming of the Messiah. “

Musk on China’s crackdown on cryptocurrencies

Musk also touched on China’s role in cryptocurrency mining and regulation.

Last week, China’s central bank introduced stricter measures in its broader crackdown on cryptocurrencies, including optimized systems for monitoring cryptocurrency-related transactions.

Musk said the heavy hand was likely related to “the country’s significant power generation problems.”

“Part of this could be due to power shortages in many parts of China,” Musk said. “Much of southern China is experiencing random power outages as the demand for electricity is higher than expected. “

“Cryptocurrency mining could play a role in this,” he said.

At a higher level, the decentralized nature of cryptocurrencies can present a challenge for the Chinese government.

“I guess cryptocurrency is fundamentally about reducing the power of a centralized government,” Musk said. “They do not like it. “

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