Elon Musk advocates “laissez faire” in the face of attempts at regulation

While many American elected officials are impatient with the regulation of the nascent cryptocurrency sector, Elon Musk, the whimsical boss of Tesla, is taking the doxa on the wrong foot as he is used to doing. “Do nothing. Let it be”, essentially proposed the South African boss to the American government during the “Code Conference”, which brings together players in the technology sector in Beverly Hills. A posture that contrasts sharply with the “Wild West“, described by Gary Gensler, the head of the SEC (Securities and Exchange Commission) in front of US senators to characterize the absence of laws in the decentralized world of cryptocurrencies,

It’s not possible to destroy cryptocurrencies, but it’s possible for governments to slow their progress.”, he added, while specifying that he does not consider himself a “great expert” on this subject. The declaration also echoes the will of Washington, within the framework of the giant plan of “infrastructure bill“Joe Biden’s post-Covid, to integrate the transactions of these assets under the control of the American tax authorities (IRS), thus linking them to traditional financial products.

Elon Musk, however, enjoys a strong influx on the course of these digital assets based on blockchain technology. At the forefront of which is bitcoin, the oldest cryptocurrency whose volatile price influences those of other assets which also have the promise of building an Internet of currencies, outside the traditional banking system and without intermediaries.

In February, automaker Tesla reignited market flames by buying $1.5 billion in bitcoins and announcing that customers could pay in bitcoins. He had flip-flopped a few weeks later, indicating that bitcoins were no longer accepted for the sake of preserving the environment. Before finally opening up this possibility again.

“Not a second messiah”

As a business leader (Tesla, SpaceX), Elon Musk takes a position according to his interests. But regularly, he gives strong support to cryptocurrencies by declaring for example that they allow “to increase the power of the individual compared to the government”.

“I believe there is value in cryptocurrencies, but I don’t see a second messiah in it like some people”he however weighed on Tuesday.

Also, while China has just taken the resounding decision to declare all transactions in cryptocurrencies illegal, Elon Musk believes that the American government should not interfere in regulating cryptocurrencies whose popularity is growing with private investors like new decentralized finance companies.

“I imagine the fundamental purpose of cryptocurrencies is to reduce the power of centralized governments, and they don’t like that”joked Elon Musk about China.

More and more cryptocurrency platforms offer services similar to those of traditional banks, a trend that worries regulators.

Faced with this competition that cryptocurrencies and stablecoins (the private and decentralized currencies on which the GAFAs are thinking in particular), the Bank for International Settlements (BIS) also urges countries’ central banks to come up with their own alternative.

Faced with competition from Bitcoin, the BIS and central banks are fighting back

(With AFP)