Fiat

Fiat refers to an authoritative or formal declaration or order, often used in legal or governmental contexts to imply a command or decree that requires compliance. Beyond its traditional meaning, the term is frequently associated with 'fiat currency', which is money issued by a government and not backed by a physical commodity, such as gold or silver. Rather, it derives its value from the trust and authority of the government that issues it.

Fiat meaning with examples

• The government issued a fiat to regulate the newly emerging cryptocurrency market, aiming to establish clear guidelines and protect investors from fraud.
• In a historic moment, the king declared a fiat that all citizens must complete their civic duties by the end of the month, emphasizing the importance of public participation.
• During the economic crisis, the central bank's fiat to increase the money supply caused widespread debate about inflation and long-term fiscal responsibility among economists.
• The mayor's fiat to transform the waterfront area into a public park faced challenges from local businesses who feared the loss of revenue and traffic.
• After much deliberation, the board passed a fiat that set new environmental regulations for local industries, reflecting a growing commitment to sustainability.