Fiat currency

Fiat currency,

Definition of Fiat currency:

  1. Common type of currency issued by official order, and whose value is based on the issuing authoritys guarantee to pay the stated (face) amount on demand, and not on any intrinsic worth or extrinsic backing. All national currencies in circulation, issued and managed by the respective central banks, are fiat currencies.

How to use Fiat currency in a sentence?

  1. I didnt know what the fiat currency was, but the guy explained it to me and he also told me how it worked.
  2. You may have times where you will accept a fiat currency if you trust the buyer and know that they will pay.
  3. You may find it is easier to accept a fiat currency at times as long as you fully trust the other party has good intentions.

Meaning of Fiat currency & Fiat currency Definition