Digital fiat refers to a digital representation of a country's traditional fiat currency, such as the US dollar or the Euro, that is issued and regulated by the government. It is essentially a digital version of physical cash that is stored and transacted electronically. This form of currency is typically centralized and controlled by a central authority, like a central bank, to ensure its stability and legitimacy. Digital fiat can be used for online transactions, peer-to-peer transfers, and various other financial activities in the digital realm.
