Fiat currency is legal tender issued by governments or central banks, deriving its value from national credit rather than physical asset backing, with mandatory circulation and legal tender status within issuing countries. Traditional fiat money (such as USD, EUR, CNY) is typically managed centrally by monetary authorities that can adjust supply through policy measures to influence the economy, and remains the dominant currency form in today's global financial system.
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Fiat Definition
Fiat currency refers to money issued and recognized by a nation or government, whose value is not directly backed by physical assets like gold or silver, but rather by government credit and legal provisions. Common fiat currencies include the US dollar, euro, and yuan, which are issued and managed by central banks and maintain value stability through monetary policy regulation.
Fiat
Fiat money is legal tender issued by governments or central banks, deriving its value from government credit rather than physical commodities like gold. It possesses legal tender status, requiring mandatory acceptance within its jurisdiction. Examples include the US Dollar, Euro, and Chinese Yuan, which form the foundation of the current global monetary system.
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