Fiat Currency

Government-issued money that is not backed by a physical commodity.

Crypto Basics Also called fiat

Fiat money has value because a state declares it legal tender and people accept it, not because it is redeemable for gold or silver. Rupees, dollars, euros and yen are all fiat.

In crypto writing the word is mostly used to mark the boundary between traditional banking rails and on-chain assets, as in fiat on-ramp.

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