Fiat money refers to a type of currency that holds value because a government declares it as legal tender, rather than being backed by a physical commodity like gold or silver. Most modern economies ...

Fiat money is a currency issued by a government that is backed by the authority and power of that government and its economy rather than a physical commodity. Historically, governments would mint ...

Fiat money and commodity money represent two distinct forms of currency, each defined by what gives it value. Fiat money is government-issued currency that has no intrinsic value but holds purchasing ...

Discover the differences between fiat money and legal tender, their roles in the economy, and why it matters for your financial insights.

Fiat is a centralized currency issued by a government, whereas cryptocurrency is a decentralized currency leveraging blockchain technology. Most modern currencies are described as fiat—issued by the ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Somer G. Anderson is CPA, doctor of ...

What is the time value of money? Time value of money (TVM) is the concept that money has greater value now than it will in the future based on earning potential. Generally, fiat money is devalued by ...

What Does Central Bank Digital Currency Mean? A Central Bank Digital Currency is a digital form of a country's fiat currency issued by its central bank. Unlike cryptocurrencies, CBDCs are centralized ...