Fiat currency is “legal tender” that is guaranteed by the federal government and has its own financial structure, such as fractional reserve banking. It may be in the form of hard cash or electronic representations, such as bank credit. It serves as a means of trade, a store of value, and a unit of account as a government-regulated instrument. Money must be robust, compact, divisible, uniform, permissible, and small in quantity in order to act as fiat. Most modern paper currencies, such as the EU pound, Japanese yen, and US dollar, are fiat currencies.
Money is everything that is generally accepted as payment for goods and services and payment of debts in a given country or socio-economic context. Many things have been used as money, from naturally rare precious metals and cow shells to cigarettes to official fiat money. Anything that fulfills the function of money can be considered money. This includes items such as gold, silver, copper, rice, cocoa beans, large stones, decorative shells, beads, etc., regardless of their origin or historical form.
Complex systems always have simpler origins, and fiat money is no exception. The concept was first practiced by the Catholic Church around 900 AD. to facilitate commerce within your organization.
Money, in the form of standardized and generally accepted tokens, has served as a medium of commerce for at least 4,000 years. Students of numismatics usually divide coins into three broad categories: primitive, classical, and medieval.
Money by decree was introduced as an alternative to commodity money and representative money, becoming the predominant model today worldwide. This happened mainly in the 20th century, since the United States broke the gold standard in 1971.
Governments and public companies have been refining their control over money. First because of the ban on paper bills and now because of zero fiduciary (electronic) exchange and the confiscation of accounts and assets. Everyone knows what is going to happen, as it has become unsustainable enough to be sustained.
If a miracle or something very destructive to our civilization does not happen, then the banknote that we have been using for the last decade or more is going to disappear within the next few years. Or maybe before. But that does not mean that people are going to stop using money or banks are going to disappear.