Don't confuse the Fed with the FDIC; the Fed was created for the purpose of keeping the economy stable.
I'm definitely not referring to deposit insurance, which has a set limit and is unrelated to you being able to take out what you put in under honest circumstances. My response was to a post which stated that central banks were primarily established to "stabilize the economy", completely glossing over the actual reasons for said instability in the first place.
From the Federal Reserve's history:
Founded by an act of Congress in 1913, the Federal Reserve System was established with several goals in mind. Perhaps most important was to make the American banking system more stable. Banking panics—events characterized by widespread bank runs and payments suspensions and, to a degree, outright bank failures—had occurred often throughout the 19th century.
Explore the Federal Reserve's history
www.federalreservehistory.org
If banks collapsing can disrupt the economy, one must ask:
Why did the banks collapse?
They collapsed because they couldn't return all the money that was deposited.
Why couldn't they return what they were entrusted to hold?
Aside from the bank being robbed (which is where insurance comes in) the only possible logical answer is that the banks' internal practices were dishonest and too greedy. It's really that simple.
Central banks institutionalized the greedy practice of growing money using other people's money (efforts) without contributing anything of proportional value in return.
A currency has real value not just because people have faith in it (fiat) but because it is a representation of people's time and efforts (energy).
It takes a lot of energy to mine a single bitcoin, just like it takes a lot of energy to mine a kilogram of gold, yet it takes only a few keystrokes to print trillions of US dollars.
People notice the immediate cost of mining bitcoin, but few notice the much greater cost of printing trillions out of thin air because the cost is not immediate (and wow stimulus checks!) but make no mistake, the piper must be paid.