The former President of the Federal Deposit Insurance Corporation (FDIC) Sheila Bair recently commented that the Bitcoin policies created by governments should protect investors rather than "feed the frenzy" on cryptocurrencies. The opinion comes from the Bair opinion article published on Yahoo Finance on Tuesday.

The former president further explains that Bitcoin should not be banned simply because it has "no intrinsic value readily apparent."

In his article, Bair also stated that governments should ensure that policies covering digital currencies should not feed the frenzy and should not make their own value judgments on Bitcoin.

In making its own value judgments on Bitcoin, the government should first make sure that our policies do not feed the frenzy.

Fiduciary currencies in circulation today also experienced the same situation as Bitcoin. At the present time, Bair claims. According to her, fiduciary money was created by corporations to meet the need of people for a means of commerce and which relied "more on psychology than on physical attributes"

] "Since the beginning of the trade, humans have assigned value to things that do not have intrinsic value easily apparent, especially in the case of exchange mediums, aka currency, we are simply assigning value because those with whom we are dealing do so too. "

Bair added that a government should focus on establishing a fair and well-informed market, a market free of fraud, manipulation and excessive speculation.

Bitcoin's support is not surprising since it is currently an independent advisor and director of several projects Blockchain and currency vi

His views, however, are still notable due to his move to the FDIC, an agency that was created by the US Congress to maintain financial confidence and stability.