Agency Dictionary
fiat currency
nounPronunciation: /ˈfiːæt ˈkʌrənsi/
In Portuguese: moeda fiduciária
Economics & FinanceWhat does “fiat currency” mean?
Government-issued legal tender not backed by a physical commodity such as gold or silver.
Etymology
Fiat is Latin for "let it be done", a form of the verb fieri, "to be made, to come about". English took it as a noun for an authoritative order or decree. Fiat money, or fiat currency, is money that has value because a government declares it legal tender, not because it can be exchanged for gold or silver. Currency comes from Latin currere, "to run", and first referred to the fact of circulating from hand to hand.
Usage note
In writing about cryptocurrency the word is often capitalized as FIAT, although it is not an acronym. It contrasts state money with crypto assets and with commodity money.
Synonyms
- fiat money
- legal tender
- paper money
Word family
- fiat
- fiat money
- current
- currently
Usage examples
Cryptocurrency brokerage surged and connected FIAT currency to the ecosystem, making it possible to exchange and convert the asset with real money, in real-time.
Concepts
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- Deflationary AssetA deflationary asset is an economic holding characterized by a strictly limited or decreasing supply that tends to appreciate in purchasing power over time. As broader…
- Inflationary AssetAn inflationary asset is an economic resource whose available supply expands continuously over time through ongoing production, harvesting, or financial issuance. Because…
Source editions
Where this entry comes from in the Agency editorial.
Words of the same theme
- Consumernoun
- An individual or group that acquires, purchases, or consumes physical or commercial goods and services for personal use. In marketing, consumers are studied for purchasing patterns and brand preferences.
- Bailoutnoun
- An emergency provision of financial assistance to a failing company, bank, or economy to prevent insolvency.
- cinnamonnoun
- An aromatic spice obtained from the stripped inner bark of several tree species of the genus Cinnamomum.
- commoditynoun
- A basic primary good, agricultural staple, or raw material that is interchangeable with other goods of the same type.
- Corporativismnoun
- The defence of the interests of a business class or professional group above the general interest, and the culture built around it. The word also names a political and economic system organized through corporations of employers, workers and professions.
- Deficitnoun
- The amount by which a sum of money falls short of the required or expected amount, particularly when spending exceeds revenue.
- Deflationaryadjective
- Tending to cause or associated with a general and persistent decline in price levels across an economy.
- denariusnoun
- A standard silver coin in ancient Roman currency that served as the principal denomination of daily commerce and military pay.
- Emporoinoun
- Ancient Greek merchants or maritime traders who carried goods between different city-states and overseas ports.
- Incentivenoun
- A motivating factor, reward, or condition that incites or encourages an individual or business to take action.
Also from these editions: terms
- syntheticadjective
- Produced by artificial or chemical synthesis rather than originating from natural or organic processes.
- brokeragenoun
- The business, activity, or fee of a licensed broker who facilitates commercial transactions between buyers and sellers.
- catalystnoun
- A substance or factor that accelerates a chemical reaction or stimulates widespread systemic change without being consumed.
- deforestationnoun
- The purposeful permanent clearing of forested land for timber, agriculture, grazing, or urban infrastructure.
- hydrocarbonnoun
- An organic compound consisting entirely of hydrogen and carbon, commonly found in petroleum, natural gas, and coal.
- intangibleadjective
- Incapable of being perceived by touch or physical senses, yet possessing recognizable economic or conceptual worth.
- mitigateverb
- To make less severe, harmful, intense, or painful in degree.
- organicadjective
- Relating to or derived from living organisms, biological matter, or systematically integrated natural systems.
- reverberateverb
- To echo repeatedly through space, or to continue having widespread ripple effects over time.
- supply chainnoun
- The complete sequence of processes, entities, and facilities involved in producing and distributing a commodity.
- surplusnoun
- An amount of an asset, commodity, or resource that exceeds what is strictly utilized or demanded.
Also from these editions: concepts
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- Carbon SequestrationCarbon sequestration is the process of capturing and securing carbon dioxide from the atmosphere to mitigate global climate change. It encompasses biological methods like…
- DecarbonizationDecarbonization is the comprehensive process of eliminating greenhouse gas emissions across industrial operations, energy systems, and commercial supply chains. It…
- Ecological TransitionThe ecological transition is the systemic structural shift of human socioeconomic models toward ecological balance, resource conservation, and minimal carbon output. It…
- Fossil Fuel DependenceFossil fuel dependence is the structural reliance of modern industrial economies on coal, petroleum, and natural gas for electrical generation, transport, and…
- Greenhouse EffectThe greenhouse effect is a natural planetary thermal process whereby atmospheric gases absorb and re-emit infrared radiation, warming the surface of Earth. Anthropogenic…
- Intangible AssetsIntangible assets are non-physical economic resources that hold identifiable commercial value and generate long-term competitive benefits for organizations. They…