fiat money

noun

Definition of fiat money

: money (such as paper currency) not convertible into coin or specie of equivalent value

Examples of fiat money in a Sentence

Recent Examples on the Web Rival China, which banned initial coin offerings and virtual currencies in 2017, recently allowed Bitcoin trading as virtual property, not as fiat money. Siddhartha Singh, Bloomberg.com, "India Plans to Introduce Law to Ban Cryptocurrency Trading," 15 Sep. 2020 Only stablecoins that are readily convertible into fiat money on an exchange satisfy the rules, the agency stressed. Matthew De Silva, Quartz, "New Zealand gives a vote of confidence in bitcoin, while the US remains wary," 15 Aug. 2019 While little public information exists about how tether is created, the currency generally trades for about $1 because each coin is supposed to be backed by $1 of fiat money in a bank. Matt Robinson And Matthew Leising, latimes.com, "Bitcoin's price has been manipulated with another cryptocurrency: tether, professor says," 13 June 2018 Bitcoin is a revolt against fiat money**, and an all-meat diet is a revolt against fiat food. Mike Albo And Amanda Duarte, Town & Country, "The Official Bitcoin Billionaire's Handbook," 6 Mar. 2018 Its code ensures that no more than 21m coins can ever be created; that sets bitcoin apart from fiat money, which central banks can create at will. The Economist, "A bit on the sideBitcoin is a speculative asset but not yet a systemic risk," 16 Dec. 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'fiat money.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of fiat money

1876, in the meaning defined above

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The first known use of fiat money was in 1876

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Cite this Entry

“Fiat money.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/fiat%20money. Accessed 7 Mar. 2021.

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More from Merriam-Webster on fiat money

Britannica.com: Encyclopedia article about fiat money

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