Fiat money (法定货币 fǎdìng huòbì) is a government-issued currency with no intrinsic value or being backed up by a physical commodity. Its value is determined by the government and people in an economy trust the value of the currency.
- 法 (fǎ) as in law (法律 fǎlǜ), rules (法规 fǎguī) or France (法国 fǎguó).
- 定 (dìng) as in stipulation (规定 guīdìng) or certain (确定 quèdìng).
- 货币 (huòbì) as in monetary policy (货币政策 huòbì zhèngcè) or digital currency (电子货币 diànzǐ huòbì).