What is Fiat?
The word fiat has Latin origins and here refers to order or regulation. Fiat is a state currency with forced circulation and a value set by the law. It refers to traditional money, specifically coins and notes that governments recognize as the legal tender of a given country. This traditional money is not backed by a physical commodity such as gold. They are created by commercial banks. A typical example of fiat money is the US dollar, the British pound, the Australian dollar, the Euro, etc.