During the 2021 Code Conference, SpaceX and Tesla CEO Elon Musk said that governments cannot destroy cryptocurrencies but can slow down their advancement.
Elon Musk has been a strong advocate of cryptocurrencies. In March this year, Tesla has announced that they would accept Bitcoin as a form of payment to purchase electric vehicles.
However, within two months, Tesla stated that they will no longer accept Bitcoin as a mode of payment due to climate change. In June, Elon said that if Bitcoin mining was more eco-friendly then Tesla would once again begin to accept the cryptocurrency as payment.
Elon Musk Says Governments Can’t Destroy Cryptocurrencies
At the annual Code Conference in California, Kara Swisher asked Musk a question on whether the Federal government should regulate the crypto space. He answered that the government should do nothing about regulating the crypto space, according to CNBC.
He mentioned that governments cannot destroy cryptocurrencies. However, they can slow down its advancement.
Elon admitted that he isn’t a massive cryptocurrency expert but he thinks that there’s some value in cryptocurrency.
Musk also addressed China’s role in cryptocurrency mining and regulation. Recently, The People’s Bank of China had declared transactions involving cryptocurrencies illegal due to disruption in the financial system.
After the announcement, the price of Bitcoin plunged more than 9%, to $41,085. Other digital currencies like Ethereum also dropped to almost 10%, falling from $3,100 to around $2,800.
The SpaceX CEO said that China’s ban on cryptocurrency may be due to electricity shortages in many parts of China. He specified that South China is having random power outages because the power demand is higher than expected.
Cryptocurrencies use decentralized control as opposed to a central bank digital currency (CBDC). Elon felt that governments don’t like the decentralization of cryptocurrencies as it reduces the power of a centralized government. He said that cryptocurrency is fundamentally aimed at minimizing a centralized government’s power.