Q: Curt: “What are the criteria necessary for Fiat Currency?”– Fiat, in latin m

–Q: Curt: “What are the criteria necessary for Fiat Currency?”–

Fiat, in latin meaning “It shall be” requires five properties:
1) Unbacked by a commodity,
2) Value maintained only by supply and demand
3) Issued by an arbitrary actor (government)
4) Insured by that actor (government),
5) and Mandated acceptance by the issuer (government) for use in the settlement of exchanges.

This means only those organizations capable of coercing its use (“thou shalt”) can issue a ‘fiat’ currency(commodity money substitute). And in practical terms, only governments are capable of producing and mandating fiat currency.

So privately issued digital is not a fiat currency. It’s a divisible, share in the network, for use as a token money, meaning as a money-substitute.

Fedcoins will likely be fiat money substitutes. If not at first then over time.