Fiat Currency
Government-issued money like the U.S. dollar, euro, or yen that isn't backed by a physical commodity.
Fiat currency gets its value from government decree and public trust, not from gold or other physical backing. The U.S. dollar, euro, British pound, and Japanese yen are all fiat currencies.
In crypto, "fiat" is used to distinguish traditional money from cryptocurrency. An "onramp" converts fiat to crypto. An "offramp" converts crypto back to fiat. USDC is a bridge between the two worlds: it's a crypto token, but each one represents $1 of fiat currency held in reserve.
Related Terms
Stablecoin
A cryptocurrency designed to maintain a stable value, usually pegged 1:1 to a fiat currency like the U.S. dollar.
USDC (USD Coin)
A regulated, fully-backed stablecoin pegged to the U.S. dollar. Each USDC is redeemable for $1.
Onramp
A service that lets you convert traditional money (fiat) into cryptocurrency.
Offramp
A service that lets you convert cryptocurrency back into traditional money (fiat).
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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.