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Fiat (Currency)
Fiat currencies are the currencies emitted by central banks and who are legal tender in worldwide jurisdictions.
The US Dollar (USD), the Euro (EUR), the Japanese Yen (JPY) or the Indian Rupee (INR) are examples of fiat currencies.
The word fiat comes from Latin and means “trust”. As these currencies are not backed by an asset such as gold, as it was the case in the past, it is said that the value of these currencies derives from the trust that people and institutions have in their value.
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