Meaning & Definition of word "Fiat"

Fiat

/ˈfiːæt/

1. An authoritative decree, sanction, or order.
- Example: The government's fiat mandated all businesses to close during the lockdown.
2. A formal grant or order from an authority.
- Example: The city council issued a fiat to restrict construction in certain areas.
3. In economics, a currency that is declared to be legal tender but is not backed by a physical commodity.
- Example: The value of fiat money can fluctuate based on the trust in the issuing government.

From Latin 'fiat' meaning 'let it be done'.

fiat currency:

Money that is declared by a government to be legal tender, but has no intrinsic value.

fiat accompli:

An accomplished fact that is presumably irreversible.

fiat lux:

Let there be light; an expression often used metaphorically.

decree:

An official order that has the force of law.

edict:

A formal proclamation or order issued by an authority.

mandate:

An official order to do something, typically issued by a government.

Meaning: An arbitrary decision or rule imposed without consideration.

Example Sentence: That new policy was just a fiat from the top management.

Meaning: Referring to something that is not backed by value, similar to a joke.

Example Sentence: They laughed at the idea of making their virtual currency a fiat.