Fiat Money
/ˈfiːæt ˈmʌni/
Definitions
- (n.) Currency that a government declares to be legal tender but is not backed by a physical commodity.
The country's economy relies heavily on fiat money issued by the central bank.
Forms
- fiat money
Related terms
See also
Commentary
Fiat money's value depends on government decree and public confidence rather than intrinsic worth, a key point in monetary law.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.