Fiat moneyFiat money is currency which derives its value from government regulation or law. The term derives from the Latin fiat ("let it be done", "it shall be").[1] It differs from commodity money and representative money. Commodity money is based on a good, often a precious metal such as gold or silver, which has uses other than as a medium of exchange, while representative money is a claim on the commodity rather than the actual good.[2][3][4]The first use of fiat money was recorded in China around 1000 AD. Since then, it has been used continuously by various countries, concurrently with commodity currencies.