Fiat Currency
Quick Answer
Fiat currency is government-issued money like USD, EUR, or GBP. In crypto payments, fiat is the settlement currency most merchants prefer — they accept crypto but receive fiat.
Full Definition
Fiat currency is government-issued money that is not backed by a physical commodity like gold. Examples include USD, EUR, GBP, and JPY. Fiat currencies derive their value from the issuing government and central bank monetary policy. In crypto payments, fiat is the settlement currency most merchants prefer — they accept crypto from customers but receive fiat in their bank account. The conversion from crypto to fiat is called off-ramping.
Related Terms
Fiat Off-Ramp
A fiat off-ramp converts cryptocurrency into fiat currency and deposits it into a bank account. SpacePay provides same-day fiat off-ramping for merchants.
Fiat On-Ramp
A fiat on-ramp converts traditional currency into cryptocurrency, allowing users to purchase crypto using bank transfers or credit cards to fund their wallets.
Finality
Finality is the guarantee that a blockchain transaction cannot be reversed once confirmed. Faster finality means faster checkout and lower fraud risk for merchants.