Fiat Currency

Podcast 1 · Introduction

Fiat Currency

A documentary-style narration: origin, meaning, and feel.

Part of speech

noun

Pronunciation

FEE-at KUR-en-see  /ˈfiːat ˈkʌr(ə)nsi/

Definition

A type of currency that is not backed by a physical commodity such as gold or silver, but instead derives its value from government regulation or law.

Plain meaning

Money that is valuable because a government says it is — not because it is made of or backed by anything intrinsically valuable, like gold.

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Technical in economics and finance. Increasingly familiar in general discussion due to the cryptocurrency debate.