The billionaire does not believe that governments could ever destroy cryptocurrencies but says they can slow its progress. He spoke about regulation and repression in China.
Tesla and SpaceX CEO Elon Musk shared his thoughts on various hot topics in the Bitcoin ecosystem on Tuesday, including cryptocurrency regulation and the latest repressive procedures against the sector by China.
Speaking at the Code 2021 conference in Beverly Hills, California, Musk explained that governments should not intend a regulatory measure on digital currencies. While he considered that governments could bring down Bitcoin, he noted that they could slow down its development.
Governments Cannot Destroy Cryptocurrencies
As CNBC reported, New York Times columnist Kara Swisher asked Musk specifically if the US government should get involved in regulations of the cryptocurrency space. Musk said in response that he would suggest doing nothing.
In August, the renowned businessman had already voiced his stance against the controversial crypto reporting provision contained in Biden’s government and its infrastructure bill.
At the time, he expressed in a tweet his thoughts about the discussion in the US Congress and added that it was not time to pick winners or losers in crypto. He continued highlighting that no crisis should force legislation hastily.
Musk Talks About a Crackdown in Chinese Territory
Musk also shared his thoughts on the latest Chinese government offensive against the local crypto industry. Last week, the Chinese authorities intensified the ban policies over cryptocurrencies, initially established in 2017, declaring all transactions with said assets illegal.
The Chinese government had already strengthened repression measures at the beginning of the year, encouraging a strategy to dismantle the crypto mining operations in the country. Officials from the Asian powerhouse have said that the measures are to diminish the coal power supply nationwide.
The CEO framed himself in context and expressed how China and its actions concerning cryptocurrencies could have been encouraged by struggles due to the shortages in the nation.
At the same time, the chairman recognized that cryptocurrencies could also have other political and financial implications due to some of their particular qualities. He said that he supposes that cryptocurrency counts on the reducted power of a centralized government as one of its fundamental goals. And governments simply do not like that.
Bitcoin is not a New Hope
The entrepreneur has become a vital figure in the digital currency space in recent months. Musk frequently accesses Twitter to express his support for the doggy meme coin, Dogecoin (DOGE). He has also come out in favor of Bitcoin, although he has been critical of the high carbon power consumption that helps that Blockchain network.
His electric vehicle company Tesla invested $ 1.5 billion in Bitcoin earlier this year, a figure that has since appreciated. The firm had also adopted Bitcoin for payments, but the move had met a suspension due to concerns of the CEO about the environmental impact. Musk has said that this suspension could trigger the policy again once Bitcoin starts consuming more sustainable energy.
By: Jenson Nuñez
