What Is Fiat Money? Fiat Money Explained in Less Than 5 Minutes BY MIKE PRICEPublished November 03, 2021 Fiat money is a currency that is backed by nothing except the faith and credit of the government issuing it. Basically every usable currency around the world today is a fiat currency. The U.S. dollar has been fiat since 1971. Doing business with fiat money is just a fact of life. Let’s talk about how fiat money works and then discuss the alternatives. Definition and Examples of Fiat Money Fiat money is a currency that is declared money by decree—not by the marketplace….