Fiat Money
Fiat money is a type of currency 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 money used in most modern economies, such as the US dollar, euro, or yen.
Developers should understand fiat money when working on financial technology (fintech) applications, payment systems, or blockchain projects that interact with traditional currencies. Knowledge of fiat money is crucial for implementing features like currency conversion, compliance with financial regulations, and integrating with banking APIs in software that handles real-world transactions.