Former FDIC Chair: Bitcoin Policies Shouldn't 'Hold the Frenzy'
“Since the start of trade, people have delegated value to matters of no readily-apparent intrinsic value. Particularly in the event of mediums of exchange, a.k.a. money, we assign value just because those with whom we innovate do this as well,” Bair added.
Sheila Bair image via Shutterstock
“Instead of creating its own value decisions about bitcoin, what government should do is first make certain that our policies do not feed the frenzy.”
Published at Wed, 27 Dec 2017 22:45:43 +0000
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However, while citing a couple of historical examples in which the government had failed in maintaining the value of its fiat currencies, such as Germany from the 1920s and the Southeast Asian countries in the 1990s, Bair believes the function of the government ought to be focused on ensuring a fair and well-informed marketplace, one free from manipulation and fraud and forbidding bitcoin speculation out of federally insured banking organizations.
In an op-ed article printed on Yahoo Finance this week, Bair instead contends policies ought to be set up to safeguard investors. From the article, Bair declared that money itself was just like bitcoin — a notion delegated value by societies since people had a medium to trade which depended “more on psychology than physical attributes.”
While Bair’s view in supporting bitcoin isn’t entirely surprising given her roles as an independent adviser and manager to several blockchain and cryptocurrency related projects, it’s nonetheless notable given her prior capability serving as the chair of FDIC, an agency created by the Congress to make sure financial assurance and stability.
She led the agency from 2006 to 2011.