2min chapter

The Forum cover image

Money: From coin to cryptocurrency

The Forum

CHAPTER

What Is Fiat Money?

Fiat money is a currency that's not backed by a commodity, such as silver or gold. It has value simply because the issuing government says it does. In China, this was particularly noticeable in the circulation of so-called strings of cash. A string of 770 coins had the nominal value of 1,000 coins.

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