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Yuan dynasty banknotes are the earliest known fiat money. Fiat money is a currency established as money by government regulation or law. The term derives from the Latin fiat (let it become, it will become) used in the sense of an order or decree. It differs from commodity money and representative money.
Definition of fiat currency: A monetary system in which the value of currency is established by declaration and is not backed by a fixed asset, such as... Definition of fiat currency: A monetary system in which the value of currency is established by declaration and is not backed by a fixed asset, such as... Home Articles