Common type of currency issued by official order, and whose value is based on the issuing authority's 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.
Use 'fiat currency' in a Sentence
You may have times where you will accept a fiat currency if you trust the buyer and know that they will pay.
I didn't know what the fiat currency was, but the guy explained it to me and he also told me how it worked.
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.
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Notable Quotable
Money and Survival
"Only when the last tree has died and the last river been poisoned and the last fish been caught will we realise we cannot eat money. (A Cree Indian Proverb)"