Former FDIC Chairman: Bitcoin Policy Should Not Strike Cryptocurrency Development

nStorming comment: FDIC is a government agency set up by the U.S. Congress, and Sheila Bair, who used to chair the organization, recently made a comment on Bitcoin. In an article she explained the value of money and supported the government in formulating policies that govern Bitcoin, but argued that the policy’s goal was to protect investors rather than to combat or even ban the new thing. In fact, experts from traditional financial institutions are sending more and more voices in support of cryptocurrencies, which is of great concern.n
nTranslation: Inan
Sheila Bair, former chairman of the Federal Deposit Insurance Corporation (FDIC), said that Bitcoin should not be banned because it does not have “intrinsic value.”n
In a column published this week by Yahoo Finance, Bair argued that there should be a policy to protect investors. She pointed out that the legal currency itself used to be like bitcoin, but a notion of being given value by society because people need a medium to trade and that the medium is “more dependent on psychological cognition than on physical property” .n
She added:n
n”Instead of making its own value judgments over bitcoins, the government should first ensure that our policies will not hurt its growth.”n
nHer support for cryptocurrency is not surprising given Bair’s previous career as an independent consultant and director of several blockchain and cryptocurrency-related projects, but since she was chairman of FDIC, a government agency set up in the U.S. Congress, Fan theory is still worth noting.n
She led the agency from 2006 to 2011.n
n”Since the advent of commerce, mankind has begun to give value to something of insignificant intrinsic value, especially in the case of exchange media, which is money, and we value it simply because of the people who deal with us.”n
nBair also mentioned some historical examples in which the government failed to maintain its legal currency value, indicating that she believes the government’s role should be focused on ensuring a fair and well-informed market that should be kept away from fraud, manipulation and over speculation.n

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