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Tuesday, Aug 16, 2022

Elon Musk: Governments Should Do Nothing About Crypto Regulations

Elon Musk: Governments Should Do Nothing About Crypto Regulations

According to Tesla CEO Elon Musk governments should not try to regulate cryptocurrency. “I would say, do nothing,” he opined. He believes that it is not possible to destroy crypto, but governments can “slow down its advancement.”

The Chief Executive of Tesla, Elon Musk, believes authorities are unable to “destroy” the digital asset industry. He advised the American government to let crypto “fly” instead of implementing legislation on it. Additionally, he gave his reasons why China has a hostile stance on cryptocurrencies.

In a recent interview with Kara Swisher, the entrepreneur, inventor and businessman, Elon Musk, shared his thoughts on some of the hottest topics in the digital asset space.

While saying that he is not a “massive cryptocurrency expert,” Tesla’s founder opined that bitcoin and the altcoins are valuable to the financial network as they can “reduce the error and latency in the money system.”

Another merit is the decentralized nature of digital assets, which makes it difficult for authorities to control them:

“You know, when governments can’t keep the hand out of the cookie jar and edit the money database, there’s probably some value to that.”

Despite being humble about his knowledge about crypto, he was a co-founder or global payment giant PayPal, so we can assume that he does know something about money and how it works.

Musk was specifically asked what the U.S. government should do regarding cryptocurrency. The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, was on stage at the conference earlier and he called cryptocurrency the Wild West of finance. The SEC chief also stressed that cryptocurrency will “not end well” if it stays outside the purview of regulators.

“I would say, do nothing. I would actually say, just let it fly.”

In fact, Tesla’s CEO believes authorities are not capable of ruining the crypto industry. They can only stagnate its progress, he added:

“It is not possible to destroy crypto, but it is possible for governments to slow down its advancement.”

At the beginning of August, just before the crucial vote on digital asset taxation from US Congress, Musk put his name next to those who opposed implementing a regulatory framework on crypto. Back then, the entrepreneur said:

“This is not the time to pick technology winners or losers in cryptocurrency technology,” as there is “no crisis that compels hasty legislation.”

Musk explains that there are two main reasons why the government of the most-populated country has a extremely negative stance on digital assets.

First, bitcoin and the altcoins are a threat to the Communist Party of China that wants to keep its centralized power:

“Cryptocurrencies are aimed at reducing the power of the centralized government and they don’t like that.”

Second, China, especially the southern part of the nation, has significant electricity generation issues as the power demand is higher than expected. Keeping in mind the energy consumption that crypto mining requires, it is no wonder why the local government banned the asset class, he concluded.

Source: Elon Musk: Governments Should Do Nothing About Crypto Regulations – Fintechs.fi


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