What is fiat meaning?

Fiat is a Latin word that means "let it be done" or "so be it". In modern times, it is often used to refer to a government-issued currency that is not backed by a physical commodity such as gold or silver but is instead based on the faith and credit of the issuing government. Fiat currencies are commonly used around the world today, and their value is determined by a variety of factors, including economic conditions, political stability, and global demand for that currency. Fiat money is typically issued by a central bank, which has the power to create new currency and regulate its supply in the economy.