what is fiat in crypto

Fiat in crypto refers to traditional, government-issued currencies, such as the US dollar, euro, or yen. Fiat money is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. In contrast, cryptocurrencies like Bitcoin are digital assets that are not issued by a government, bank, or other central authority. Fiat currencies are widely used as a medium of exchange and are legal tender in their respective countries. While cryptocurrencies can also be used for payments and as a store of value, they rely on blockchain technology and do not have the same level of government backing as fiat currencies.