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Elon Musk, CEO of Tesla, says the U.S. authorities ought to keep away from regulating crypto

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Tesla CEO Elon Musk said Tuesday the US government should try not to regulate the crypto market.

“I think it is not possible to destroy crypto, but it is possible for governments to slow down its development,” Musk said at the Code Conference in Beverly Hills, California.

Musk responded on stage to a question from New York Times columnist Kara Swisher. She asked if the U.S. government should be involved in regulating the crypto space.

“I would say, ‘Do nothing,'” he said.

Tesla announced earlier this year that it had purchased $ 1.5 billion worth of Bitcoin. The value of these holdings rose to about $ 2.5 billion in the second quarter as bitcoin prices rose. Bitcoin has since fallen along with other cryptocurrencies.

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Musk, who has frequently announced his support for various digital coins on Twitter, is optimistic about crypto’s role in potentially reducing “errors and latency” in the legacy monetary systems. But he acknowledged that crypto doesn’t have all the answers to society’s evils.

“I wouldn’t say I’m a massive cryptocurrency expert,” Musk said. “I think cryptocurrency has some value, but I wouldn’t say it’s the second coming of the messiah.”

Musk on China’s crypto penetration

Musk also addressed China’s role in crypto mining and regulation.

Last week, China’s central bank announced tougher measures in its broader crackdown on cryptos, including sophisticated systems for monitoring crypto-related transactions.

Musk said the heavy hand likely had to do with the country’s “significant power generation problems”.

“Some of this could actually be due to power shortages in many parts of China,” Musk said. “Many southern China are currently experiencing random power outages because the electricity demand is higher than expected.”

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

At a higher level, the decentralized nature of cryptocurrencies can pose a challenge to the Chinese government.

“I suppose cryptocurrency is essentially aimed at reducing the power of a centralized government,” Musk said. “They don’t like that.”

SEE: Elon Musk says Bitcoin looks a lot more environmentally friendly

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