Definitions for fiat currency
This page provides all possible meanings and translations of the word fiat currency
Money that has indirect market value or is given legal tender status by government fiat.
Fiat money is currency which derives its value from government regulation or law. The term derives from the Latin fiat. It differs from commodity money and representative money. Commodity money is based on a good, often a precious metal such as gold or silver, which has uses other than as a medium of exchange, while representative money is a claim on the commodity rather than the actual good. The first use of fiat money was recorded in China around 1000 AD. Since then, it has been used continuously by various countries, concurrently with commodity currencies.
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"fiat currency." Definitions.net. STANDS4 LLC, 2015. Web. 25 Apr. 2015. <http://www.definitions.net/definition/fiat currency>.