Fiat currency

Fiat currency is a medium of exchange understood by governments. It is government-issued money not backed by any commodity such as gold. It allows for central banks greater control over the economy because they can control the printing process. Examples of Fiat currency range from the dollar, pound, euro, Rand, and Chinese yuan. These Fiat currencies are subject to market manipulation whether it be float, fixed-rate, or pegged the exchange rates for fiat currencies are not based on value but based on economic results or expected outcomes. Bitcoin the era of “cryptocurrencies” leading to increased market adoption of PayPal and Visa.