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  1. Home
  2. /Glossary
  3. /Fiat Currency
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Fiat Currency

Government-issued money that isn't backed by a physical commodity like gold.

Definition

Government-issued money that isn't backed by a physical commodity like gold. The US dollar, euro, and yen are all fiat currencies. Their value comes from government authority and public trust rather than intrinsic worth.

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Related Terms

Inflation

The rate at which prices rise and money loses purchasing power.

Cryptocurrency

Digital money secured by cryptography and typically running on a blockchain.

Basis Point

One hundredth of a percentage point (0.

CBDC (Central Bank Digital Currency)

A digital form of a country's official currency issued and controlled by its central bank.

Consumer Price Index (CPI)

A measure of average price changes for a basket of consumer goods and services.

Crypto Custody Regulation

Rules governing how institutions store and safeguard crypto assets on behalf of clients.

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