The dollar is the world standard fiat currency. Fiat means “by decree”. That means that all modern money has no guarantee of being backed by any real asset. But the power of having such a tool is obvious. In the current system, the issuers of fiat currency (central banks) can direct future human labor en masse—organizing people in a way that allows big ideas in human progress to take shape. In general, the issuers of fiat currency can only do this because of the confidence in the currency. That is, as long as people will accept the currency in exchange for things of real value to their real lives, the currency does, de facto, have some value. Post-scarcity governance implementations should certainly be able to make use of this tool as well—and perhaps with a more healthy form of confidence in the currency; one not derived out of coercion or necessity, but derived out of an organic trust in the intentions and effectiveness of the collective who is issuing the currency. While Fiat Currency can be issued ad hoc, and for any purpose, we suggest that the most common, likely use is to compensate members for their contributions which don’t necessarily directly affect the equity value of the Collective. The currency then derives its value from others appreciation of that contribution. In consistency with other parts of the system, with this piece of digital governance, full transparency is available to examine when and where any new Fiat Currency was issued. As with Equity Currency, a Fiat Currency’s actual value depends solely on what people are willing to trade for it. Just like exchange rates between the dollar and the yen, exchange rates on Fiat Currencies issued by various collectives will fluctuate based on supply and demand, and other factors.
