What Is Fiat Currency In Crypto?
By Javanx3d on ALTCOIN MAGAZINE
So, when someone is new to cryptocurrency investment, one of the common questions that arise is what exactly is fiat currency in crypto? If you find yourself in this position, you are not an oddball or not-in-the-know. It is not uncommon for many people who don’t work in the finance sector or are new to crypto to not understand what “FIAT” is at first. We’ll take you through the wavetops here to help explain, and help you better understand how traditional money relates to cryptocurrencies today.
What Exactly Is Fiat?
Fiat is a currency that a government has declared to be the legal tender for their country. Translated, the term fiat means “let it be done” and is not an acronym. The respective government who issues the currency is in control of the supply and guarantees the validity of the currency for use in economic trade. All fiat currencies are not backed by a physical standard like what was used in the past like the gold or silver standard. Each of these was previously used in the past by the United States between 1830 and 1971.
