Elon Musk, the CEO of Tesla, on Tuesday, expressed an opinion that the US government should avoid attempting to control the cryptocurrency market.
Musk was speaking at the Code Conference in Beverly Hills, California, and was asked whether the US government should be involved in crypto regulation.
"It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement,” Musk said in response to a question from a New York Times columnist, per reports. "I would say, ‘Do nothing.’"
Tesla announced in February that it has purchased $1.5 billion in bitcoin. As bitcoin prices rose, the value of those holdings increased to around $2.5 billion in the second quarter. Bitcoin, like other cryptocurrencies, has since fallen in value.
Musk did however admit that crypto did not have all of the answers to society's problems.
“I wouldn’t say that I’m a massive cryptocurrency expert,” he explained. “I think there’s some value in cryptocurrency, but I wouldn’t say it’s the second coming of the Messiah.”
Musk also spoke about China's role in cryptocurrency mining and regulation, according to the transcription. He said, that in his opinion, the Chinese stance against cryptocurrency is most likely due to the country's "significant electricity generation issues."
“Part of it may actually be due to electricity shortages in many parts of China,” said Musk. “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."
The decentralized character of cryptocurrencies may pose a challenge to the Chinese government at a higher level, Musk reportedly concluded.
"I suppose cryptocurrency is fundamentally aimed at reducing the power of a centralized government," he said. "They don’t like that."