Your money.
- Egon Skovmose
- Oct 18, 2023
- 1 min read
In the context of money and finance, "fiat" refers to a type of currency that has value because a government declares it to be legal tender. This means that the currency is accepted as a medium of exchange and is not backed by a physical commodity like gold or silver. The value of fiat money is based on trust in the government's ability to maintain its value and the stability of the economy. Most of the world's currencies, such as the US Dollar, Euro, and Japanese Yen, are examples of fiat money.
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