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.
