Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.
Currency notes and coins are called fiat money. They do not have intrinsic value like a gold or silver coin.
๐ฅ-Fiduciary Money
Fiduciary money refers to money backed up by trust between the payer and payee.
Example: Cheques are fiduciary money as these are accepted as a means of payment on the basis of trust but not on the basis of any order of the government.
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