Tesla CEO Elon Musk has said the United States should not regulate the cryptocurrency market. According to him, "crypto cannot be destroyed, but it is possible for governments to slow down its advancement." When asked how the government should approach the control of the cryptocurrency sector, Musk responded:
"I would say, Do nothing."
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At the same time, Musk has recognized the potential of cryptocurrencies to reduce the "error and latency" of the traditional financial system, however, he has questioned their ability to solve all of society's problems:
"I wouldn’t say that I’m a massive cryptocurrency expert. I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah."
The latest restrictions imposed on cryptos in China, which affect both mining and trading of cryptocurrencies, Musk links them to "significant electricity generation issues:"
"Part of it may actually be due to electricity shortages in many parts of China. A lot of South China right now is having random power outages, because the power demand is higher than expected. Crypto mining might be playing a role in that."
In addition, decentralized currencies are inherently inconsistent with China's central bank policies, Musk has said:
"I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government. They don’t like that."