What is Fiat Money

What is Fiat Money

“Fiat money is a currency without intrinsic value that has been established as money, often“Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agreed on its value.” https://en.wikipedia.org/wiki/Fiat_money

The word “fiat” is Latin in origin and refers to an arbitrary order issued by a government or other authoritative figure. When applied to paper money, fiat currency refers to the scary notion that our money has value only because the government says it does.