Recent Examples of fiat money from the Web
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.
Bitcoin is a revolt against fiat money**, and an all-meat diet is a revolt against fiat food.
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.
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.
Financial Definition of FIAT MONEY
What It Is
How It Works
As valid currency solely by virtue of a government declaration, fiat money is not backed by any commodity, such as gold, but only by the faith of the bearer. In this respect, unlike currencies backed by gold or silver, fiat money does not have any intrinsic value (e.g., paper money and much coinage). The U.S. dollar is an example of fiat money.
Why It Matters
Fiat money allows the declaring government to employ virtually any material, such as paper (which is lightweight and convenient for carrying), as a medium of exchange. However, since the value of fiat money lies solely in the faith of those using it, its value can be easily diminished and result in rapid inflation.
Learn More about fiat money
Britannica.com: Encyclopedia article about fiat money
Seen and Heard
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