Sheila Bair believes bitcoin and the dollar has no intrinsic value
Sheila Bair the former FDIC chairperson is not worried regarding the hype about cryptocurrencies and believes that there is isn’t any reason why Bitcoin and other cryptocurrencies should be termed illegal
Sheila Bair quoted ‘I don’t think we should ban it — the green bills in your pocket don’t have an intrinsic value, either. The value is based on what others think is its value. That’s true of any currency.’
She also says that the value of any currency is based on what others think is its value.
“Regulation should be focused on good disclosure, education, warding off fraud and making sure it is not used for illicit activities. Let the market figure out what it’s worth,” she said and that is what is cryptocurrency doing right now.
Cryptocurrencies are facing a lot of regulatory issues not only in the U.S. but all around the world after its bull run in 2017. But Bitcoin has grown over 800% over the last over that last year despite their recent losses. After hitting more than $19,000 in December last year the price of Bitcoin dropped and was last at $11,110.
Sheila Bair headed the Federal Deposit Insurance Corp whose role is to ensure U.S. bank deposits and has also served on the Commodity Futures Trading Commission.
She said bitcoin would not trigger the next financial crisis and said that
“I’d keep an eye on credit-card debt. Subprime auto has been a problem for a couple years, and valuations on loans used to finance leveraged buyouts are high. Any type of secured lending backed by an asset that is overvalued should be a concern. That is what happened with housing. Corporate debt also has not gotten as much attention as it should. It is market-funded, rather than bank-funded, but the banks still have exposure. Then there’s cyber-risk. It took us so long to get