Fiat Currency
Government-issued money such as USD, EUR or GBP that a crypto card converts to when you pay a merchant.
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Fiat currency is traditional money issued by a government, like the US dollar or euro. Merchants on the Visa and Mastercard networks are settled in fiat, even when you fund a card with crypto.
When you spend a crypto card, your stablecoin balance is converted to the merchant's fiat currency at the moment of payment, so the store receives ordinary money.
Related terms
- StablecoinA cryptocurrency designed to hold a stable value, usually pegged 1:1 to a fiat currency like the US dollar.
- Crypto CardA payment card on the Visa or Mastercard network funded by cryptocurrency, which converts to fiat at the point of sale.
- FX MarkupAn extra percentage added on top of the exchange rate when a card spends in a currency other than its base.
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