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Former FDIC Chair: Bitcoin Policies Shouldn’t ‘Feed the Frenzy’

Sheila Bair, the past chair of the U.S. Federal Deposit Insurance Corporation (FDIC), is arguing bitcoin shouldn’t be banned objective because it doesn’t have “intrinsic value.”

In an op-ed article published on Yahoo Resources this week, Bair instead contends policies should be in circumstances to protect investors. In the post, Bair elaborated that currency itself was sporadically just like bitcoin — an idea assigned value by societies because people basic a medium to trade and that depended “more on psychology than medico attributes.”

She added:

“Instead of making its own value judgments about bitcoin, what regulation should do is first make sure our policies don’t feed the frenzy.”

While Bair’s spectacle in supporting bitcoin is not entirely surprising given her roles as an independent advisor and chief to several blockchain and cryptocurrency related projects, it is nonetheless notable actuality her previous capacity serving as the chair of FDIC, an agency created by the Congress to insure financial confidence and stability.

She led the agency from 2006 to 2011.

“Since the inception of commerce, humans have assigned value to things of no readily-apparent inborn worth. Particularly in the case of mediums of exchange, a.k.a. currency, we assign value totally because those with whom we transact do so as well,” Bair added.

Citing reliable examples where the government had failed in maintaining the value of its fiat currencies, Bair disclosed she believes the role of the government should be focused on ensuring a fair and wise market, one free from fraud, manipulation and outsized speculation.

Sheila Bair idol via Shutterstock

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