A fiat money is a type of currency that is declared legal tender by a government but has no intrinsic or fixed value and is not backed by any tangible asset, such as gold or silver.

History

Today, nearly all national currencies are fiat currencies but this was not always the case.

Fiat money became popular in the 20th century when U.S. President Richard Nixon introduced a law that canceled, the direct convertibility of the U.S. dollar into gold.

Britain had already left the gold standard in 1931