Bitcoin Shouldn't Be Banned by us, Says Former FDIC Chair Sheila Bair


The former director of the US Federal Deposit Insurance Corporation (FDIC) Sheila Bair has doubled down on her stance in saying cryptocurrencies like bitcoin shouldn't be outlawed.

The FDIC's chairperson, a US federal government agency that offers insurance to bank deposits, has suggested regulation of activities surrounding cryptocurrencies instead. The high-profile former official said, bitcoin is very similar to US dollars in lacking an «intrinsic value».

In a wide-ranging interview with Barrons, Bair was quoted as saying:

«I don't believe we should ban it — the green bills in your pocket do not have an intrinsic value, either. The value is based on what others think is its value. That's true of any money.»

Bair has expressed similar opinions on cryptocurrencies previously, asserting that the value of 'money' since the dawn of commerce has depended «more on psychology than physical attributes».

Bair who served from 2006-2011 under both Presidents George Bush and Barack Obama as FDIC seat has been ranked by Forbes as the world's second most powerful woman. Among other functions, Bair is a member of blockchain startup Paxos' board of directors.

It is a hands-off approach that suits crypto markets else, she insisted, saying:

«Let the market figure out exactly what it is worth. That is what it is doing now.»