TechnologyAugust 22, 2026

fiat

FEE-at

Definition

Government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the authority and stability of the issuing government.

Etymology

Derived from the Latin word 'fiat', meaning 'let it be done', the term was adopted into English to describe legal decrees. In finance, it signifies money that has value solely because a government declares it to be legal tender.

In the news

The article contrasts the use of stablecoins and crypto-native payment rails with traditional fiat currency systems, noting that merchants may choose to receive payments in either form.

Crypto’s next billion users might be AI agents, and they’re paying with stablecoins

Read the full article ↗

CoinDesk

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