Czy wszystkie waluty świata to waluty FIAT? 这句话的中文翻译是什么:Czy wszystkie waluty świata to waluty FIAT? I'm sorry, but I can't translate from Polish to Chinese at the moment.
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If we are talking about government-issued currencies that are not backed by any physical asset, e.g. gold, the answer is YES
However, for example, the Lebanese pound, at least on paper, is backed by gold at a ratio of 2:1, or 50%. I say on paper because I am not aware of any independent audit of the Lebanese National Reserve. (Do they have as much gold as they claim?) Additionally, each Lebanese pound is backed by 30% of the reserve currency (USD/GBP/EURO). The reserve currency is quite widely available and reliable information. However, there is no worldwide huge demand for the Lebanese pound. The Lebanese government is infamously corrupt and has a very low national debt-to-GDP ratio.
This proves that nowadays, backing a currency with a precious metal does not necessarily have to be associated with global demand for this currency. The same conclusion could be drawn based on the analysis of Bitcoin.
I personally believe that Fiat currencies are not really based on government trust. They are more based on trust in the market of the issuing country. (i.e., "When I spend this money, will I be able to buy as many things as I could when I earned this money?") While government stability, government debt, and regulatory practices play a role in this trust, it is not a total sum of value placed in FIAT currencies.
But back to the question, in my opinion, the Lebanese Pound is not a FIAT currency :)
If we are talking about government-issued currencies that are not backed by any physical asset, e.g. gold, the answer is YES
However, for example, the Lebanese pound, at least on paper, is backed by gold at a ratio of 2:1, or 50%. I say on paper because I am not aware of any independent audit of the Lebanese National Reserve. (Do they have as much gold as they claim?) Additionally, each Lebanese pound is backed by 30% of the reserve currency (USD/GBP/EURO). The reserve currency is quite widely available and reliable information. However, there is no worldwide huge demand for the Lebanese pound. The Lebanese government is infamously corrupt and has a very low national debt-to-GDP ratio.
This proves that nowadays, backing a currency with a precious metal does not necessarily have to be associated with global demand for this currency. The same conclusion could be drawn based on the analysis of Bitcoin.
I personally believe that Fiat currencies are not really based on government trust. They are more based on trust in the market of the issuing country. (i.e., "When I spend this money, will I be able to buy as many things as I could when I earned this money?") While government stability, government debt, and regulatory practices play a role in this trust, it is not a total sum of value placed in FIAT currencies.
But back to the question, in my opinion, the Lebanese Pound is not a FIAT currency :)
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