Fiat currency

Fiat currency is money that a government has declared to be legal tender, meaning it must be accepted as a form of payment for goods and services. Unlike commodities like gold or silver, fiat currency has no intrinsic value; its worth comes from the trust and confidence that people have in the issuing government. This trust allows it to be used effectively in trade and as a store of value. Common examples include the US dollar, the euro, and the yen. Essentially, it's money because the government says it is, and people agree to use it.