Elon Musk says cryptocurrency can't be destroyed

The head of Tesla advised the U.S. government to deregulate the crypto market and cited the reason for the industry’s severe bans in China.
Elon Musk says cryptocurrency can't be destroyed

Cryptocurrency cannot be destroyed, but governments can slow its spread, Tesla CEO Elon Musk said at the Code Conferene conference, CNBC reports. The billionaire added that U.S. authorities should refrain from attempts to regulate the crypto market.

Musk praised the role of cryptocurrency in potentially reducing “errors and delays” in existing financial systems. However, he stressed that the new asset type is not the solution to all of society’s problems.

“I wouldn’t call myself a big expert on cryptocurrency. I think there is some value in cryptocurrency, but I wouldn’t call it the second coming of Christ”, Musk concluded.

The head of Tesla and SpaceX also commented on strict regulation of the crypto industry in China. Last week, the People’s Bank of China imposed a complete ban on cryptocurrency transactions. The use of digital assets in the country now equates to illegal financial activity. Chinese authorities blocked CoinGecko and CoinMarketCap services from operating in the country.

According to Musk, this may be due to the country’s serious problems with power generation. “Part of it may be due to power shortages in many regions of China. Right now, there are sudden power outages in many southern provinces of China because the demand was higher than expected,” Musk explained. He added that cryptocurrency mining could play a role in this.

According to the billionaire, the decentralized nature of cryptocurrencies could have been a problem for the Chinese government. Musk noted that cryptocurrency aims to reduce the power of the centralized government, which does not suit the Chinese authorities.

In July, the businessman revealed that he personally owns Bitcoin, Ethereum and Dogecoin. He also said that Tesla, which has 43,200 BTC worth $1.8 billion on its balance sheet, plans to resume accepting cryptocurrency as a means of payment. The company abandoned this option in mid-May of this year due to an environmentally unfriendly way of mining bitcoin.

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