Tesla CEO Elon Musk said on Tuesday that governments should stay out of regulating the cryptocurrency market.

“It’s not possible, I think, to destroy crypto,” Musk told New York Times columnist Kara Swisher at the Code conference in Beverly Hills, Calif. “But it is possible for governments to slow down its advancement.”

Instead, he thinks regulators should just ‘do nothing’ and ‘just let it fly’.

THE NUCLEAR ENERGY OF BITCOIN MINORS AS AN ENVIRONMENTAL CRITICISM

His comments come as Securities and Exchange Commission Chairman Gary Gensler called cryptocurrencies the “Wild West” of digital assets and pushed for more regulation in the United States. Meanwhile, China launched its own crypto crackdown last week, declaring all mining transactions and activities in the country illegal.

Musk weighed in on China’s ban, noting that part of it is likely related to “the country’s significant power generation problems.”

“Much of southern China is experiencing random power outages because demand for electricity is higher than expected,” he explained. “Crypto mining could play a role in this.”

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Musk himself warned of Bitcoin mining’s “insane” electricity consumption earlier this year and turned the tide by accepting the world’s largest cryptocurrency as an alternative form of payment for them. Tesla vehicles due to its heavy reliance on fossil fuels. However, the electric vehicle maker still has Bitcoin on its balance sheet after buying $ 1.5 billion worth of it in February.

In addition to China’s potential concerns about its energy use and environmental impact, Musk said the cryptocurrency “is fundamentally about reducing the power of a centralized government” and the Chinese “don’t like it. “.

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Looking ahead, Musk expressed hope that cryptocurrencies could help reduce “errors and latency” in the financial system, but stressed that he would not call himself a “massive crypto expert. cash”.

“I think cryptocurrency has some value,” Musk said. “I don’t think this is the second coming of the messiah, which they all seem to think.”

At the time of publication on Wednesday, the cryptocurrency market is trading higher, with Bitcoin currently around $ 42,000 per coin and its rivals Ethereum and Dogecoin around $ 2,900 and 20 cents per coin, respectively, according to the real-time price monitoring by Coindesk.

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