Fiat money is a
currency established as money by government regulation or law. The term derives from the
Latin ("let it be done", "it shall be") used in the sense of an order or decree. It differs from
commodity money and
representative money. Commodity money is created from a good, often a
precious metal such as
gold or
silver, which has uses other than as a
medium of exchange (such a good is called a commodity), while representative money simply represents a claim on such a good.