Fiat money

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Related to Fiat currency: Bitcoin

Fiat money

Nonconvertible paper money.

Fiat Money

Money that is not backed by anything other than a government trust. Fiat money has no intrinsic value; it only has value at all because all participants in an economy agree to trust the government issuing the currency. All modern money is fiat money. While deflation is possible for fiat money, it is much more susceptible to inflation.
References in periodicals archive ?
VC is also distinct from e-money, which is a digital representation of fiat currency. E-money is convertible to fiat currency in licensed e-money issuers or e-money agents.
214), suggests that fiat currency, subject to incessant devaluation, would crowd out transactions demand for a bitcoin-type N-FAD, whose scarcity is guaranteed by design.
Trust in digital currency issued by a central bank is based on the same fundamentals as trust in fiat currency because of the promise of par value convertibly to cash and the fact that the central bank issued it.
Thus, in a sense, dollars, euros, pounds, yen, Swiss francs, and Chinese yuan are really somewhat different flavors of one single option--today's floating fiat currency status quo.
The libertarian nature behind the Bitcoin has seen it thrive, and has raised the debate on whether virtual currencies are a viable alternate to the traditional fiat currency system we have today.
"We're expecting many consumer-oriented technologies to be built on the idea of bitcoins, all in an effort to legitimize it as a true alternative to a fiat currency. I've been seeing a lot of Silicon Valley money going in with great interest from venture capitalists.
At the market price there is always liquidity in bitcoins and local fiat currency. We are just a transfer agent or market maker for bitcoins for fiat currency or fiat currency for bitcoins.
It was the last of the world's currencies to be backed by gold, and thus began an experiment with a reserve fiat currency that was doomed to failure before it began.
His topics include conflicting views on fiat currency in Britain and its North American colonies during the 18th century, travelers' checks and the rise of American tourism 1840-1900, and market research at Merill Lynch and Company.
The dollar has since fully supplanted gold as the foundation of the world's monetary system; a feat unprecedented in world history for a completely uncollateralized fiat currency. But should the dollar continue an extended decline, under pressure from unprecedentedly high trade deficits, there is every reason to believe that central banks will seek greater diversification in their reserves, most likely into euros.
Some results are new, however, especially those concerning the conditions for fiat currency to have value in equilibrium.
Stablecoins are a cryptoasset pegged in value to fiat currency or other assets, designed to avoid the volatility inherent in other cryptocurrencies whose price is entirely market driven.