Fiat Currency
Fiat currency is a type of money that is declared legal tender by a government but is not backed by a physical commodity like gold or silver. Its value derives from the trust and confidence of the people who use it, as well as government regulation and economic stability. It is the standard form of currency used in most modern economies, such as the US Dollar, Euro, or Japanese Yen.
Developers should understand fiat currency when working on financial technology (fintech) applications, payment systems, or blockchain projects that interact with traditional monetary systems. Knowledge of fiat currency is essential for implementing features like currency conversion, compliance with financial regulations, and integrating with banking APIs in software development.