fiduciary money

Fiduciary money is a type of currency that is not backed by a physical commodity like gold or silver. Instead, its value is based on the trust and confidence people have in the issuing government or authority. This trust is crucial because it allows the money to be accepted as a medium of exchange.1

In a fiduciary relationship, one party places trust in another to act in their best interest, particularly concerning property or financial matters. This principle extends to fiduciary money, where the public's faith in the issuer underpins its value and acceptance in transactions.231