Fiat money or legal tender on the other hand is highly centralised, mostly cash-based and issued into the economy according to whatever monetary policy the central bank adopts.In terms of decentralisation, cryptocurrencies have a global record-keeping system that is visible and distributed across the market participants in a peer-to-peer fashion.
A stablecoin can be pegged to a cryptocurrency,
fiat money, or to exchange-traded commodities (such as precious metals or industrial metals).
Libra, we are told, will be pegged to a basket of currencies (
fiat money issued by governments), and convertible on demand and at any cost.
Customers can also take advantage of Coinbase's service of converting
fiat money, like a dollar or a euro, into any digital currency.
BSP Deputy Governor Diwa Guinigundo said there are limitations of bitcoins as substitute for
fiat money in terms of being unit of account, medium of exchange, and store of value.
Under the said issuance, VC exchanges or businesses engaged in the exchange of VCs for equivalent
fiat money in the Philippines are required to register with the BSP as remittance and transfer companies.
Commodity money is distinguished from
fiat money because it has an intrinsic value separate from its value as money.
Some thoughtful people regret, as Cain does, the end of the gold standard, but they understand, as he does not, that
fiat money is here to stay.
Real, physical gold ownership is being digitized with ownership securely recorded on blockchain technology, so that physical gold and silver can be spent just as easily as
fiat money, in the same way that banknotes used to be IOUs for gold.
a
fiat money world is beneficial, even if it does not completely
Attempting to break down the established networks of
fiat money markets into the aforementioned categories helps to simplify an intricate multiverse of currencies, assets, and other financial instruments.
Just as the gold standard fostered an era of unprecedented economic progress, so
fiat money helped turn many nations' economies into "centrally planned and government-directed failures" (51).
