Fiat money


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Related to Fiat money: gold standard, Commodity money

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 ?
generates a boom in foreign lands; (3) the production of fiat money
Above all, the century-old regime of inflation that has quietly and steadily robbed middle-class America of its wealth should be done away with, the Federal Reserve shuttered, and fiat money replaced with the old-fashioned precious -metal standard that allowed generations of Americans to prosper.
Under the assumption that storing fiat money is costly and storing bitcoin is not, bitcoin is a strictly superior technology for storing wealth.
But in fact the proliferation of cryptocurrencies that we've seen over the past few years makes it less likely, not more, that they will eventually replace fiat money.
Fiat monies can be imposed by governments, either by revoking the contractual obligation to redeem for commodity-backed notes or by issuing a fiat money ex-nihilo.
He noted that the dispensing of cash would be in fiat money, so the user can select the amount they wish to get in UAE dirhams.
Speaking on the issue of Bitcoin which is registering record heights worldwide, Reddy said that there has to be a sovereign behind fiat money as only the sovereign can take unlimited risk and has the capacity to withstand strain.
DF said it will work in partnership with BC Fintech Sdn Bhd, a Dragonfly system integrator, to implement the payment and settlement solution, which will drive the entire remittance chain, from wholesale foreign exchange to the receipt of fiat money at the recipient's end.
Different fiat money have been removed and replaced by a single one administrated by a supra-national entity (European Central Bank) that is apparently independent and away from political interference (Bagus 2011).
The leader should act for the sovereign people, and not for the benefit of a one-world government cabal that will rule with fiat money - paper vouchers that you are told you must use as money...
Following its successful use of fiat money in 1690, Massachusetts made multiple issues of paper currency to finance its involvement in Queen Anne's War (1702-1713).
Today the Fed has virtually unlimited power and the dollar is a pure fiat money.