What Is Fiat Currency?
Fiat currency refers to government-issued money that is not backed by a physical commodity like gold or silver. Instead, its value is derived from legal recognition and trust in the issuing authority. Common examples include the US dollar (USD), euro (EUR), and British pound (GBP).
Fiat currencies are centrally managed by governments and central banks, which control supply, interest rates, and monetary policy. They are widely accepted for payments, taxes, and everyday transactions, making them the dominant form of money in the global financial system. However, fiat currencies can be affected by inflation, capital controls, and restrictions on cross-border transfers.
In the crypto space, fiat is often used as a reference point for pricing digital assets or as an entry and exit point through exchanges. Stablecoins are designed to mirror the value of fiat currencies while operating on blockchain networks.
KAST bridges fiat and crypto by enabling users to spend stablecoins globally, offering the convenience of fiat payments with the efficiency of blockchain technology.
