Fiat money is currency which derives its value from government regulation or law.
Completely wrong. Governments can regulate commodities and tell you how much they are worth, but it doesn't make it a fiat currency.
Wikipedia is the encyclopedia where anyone can edit. So, if you're sure that your definition is correct,
you shuold fix it for the benefit of the community. But, remember the [
citation needed].
money (as paper currency) not convertible into coin or specie of equivalent value
That makes no sense. Misquote?
I don't know. I only show the sources. If you think this definition doesn't make sense, then you should contact
Merriam Webster.
Here is the rub: If you classify currency as EITHER fiat OR a commodity or commodity-backed currency (USD before Nixon), then I think
You think?
bitcoin is a fiat, with the "government" being the consensus of miners regulating the issuance of bitcoin. You just can't go back to the miner and ask for some electricity and hardware in exchange for the bitcoin they mined that you currently hold.
As a matter of fact, you can. It's called “selling a product or service”.
The term "government" in relation to fiat currency is vague. US dollars are issued by a private bank AKA the Federal Reserve that is not really controlled by the US government. Euros are not issued by one government, but rather a cartel of governments.
OK, from the site of the Federal Reserve (emphasis mine):
The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution.
As the nation's central bank, the Federal Reserve derives its authority from the Congress of the United States. It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms.
However, the Federal Reserve is subject to oversight by the Congress, which often reviews the Federal Reserve's activities and can alter its responsibilities by statute. Therefore, the Federal Reserve can be more accurately described as "independent within the government" rather than "independent of government."
As far as I understand, the Federal Reserve is subject to the government, and so, by transitivity, the money they create is also subject to the government.
As for the EU, a “cartel” of governments, as you call it, also means that the Euro is government-controlled. I don't understand what's your confusion here.
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