From November, 2018

WB: Bitcoin Versus Electronic Money

One way to comprehend virtual currency is to first understand fiat currency. Fiat currency is any legal tender designated and issued by a central authority that people are willing to accept in exchange for goods and services because it is backed by regulation and because they trust this central authority. Fiat money is similar to commodity-backed money in appearance and usage, but differs in that it cannot be redeemed for a commodity, such as gold. (Sarah Rotman Parker, WB/CGAP, January 2014, cit. the European Central Bank, 2012)