What is fiat definition?

Fiat is a type of currency that is not backed by any tangibles like gold or silver. It is completely fluid and is only worth what it is recognized as within the economy. Fiat currency is widely used in modern economies and is recognized as the standard currency for most countries. While fiat currency may not be backed by anything tangible, it is backed by the government's guarantee that it is accepted as a means of payment for legal transactions. Fiat currencies can also be produced at any time, making them a convenient means of exchange and a valuable tool to facilitate commerce.