Currency that is not backed by a physical commodity, such as gold or silver, is referred to as a fiat currency. Fiat currency derives its value from the trust and confidence placed in the issuing authority, typically a government. Unlike commodity-backed currencies, which have intrinsic value based on the underlying commodity, fiat currencies are based on faith in the stability and acceptance of the issuing entity. The value of fiat currency is maintained through monetary policies, economic factors, and the overall trust in the currency's stability. Most modern national currencies, including the US dollar, Euro, and British pound, are examples of fiat currencies used in today's global financial systems.