Fiat currency

A type of currency that is issued by a government and has value because the government maintains it and people have faith in its value. Unlike cryptocurrencies or commodities like gold and silver, fiat money does not have intrinsic value; its worth is derived from the trust and confidence of the people who use it. Examples of fiat currencies include the US Dollar (USD), Euro (EUR), British Pound (GBP), and Japanese Yen (JPY). Fiat currencies are the most common form of money used for everyday transactions, and they are regulated by central banks, which control the supply and influence interest rates to manage economic stability.