In an earlier comment @nightwind used the term sub-fiat
to describe crypto, and allowed paper currency to hold the fiat designation. Regardless, neither are commodity—we can agree to that. So I believe we are all of the same interpretation.
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Yes crypto has blurred some of the terms for sure.
Fiat has no value but for whats backing it. The US dollar is backed by the economy of the US and all it produces in terms of GDP,
Crypto is backed right now by the fiat for it produces nothing but can be traded for something that does, a countries fiat currency that is backed by that countries GDP or whatever they peg the currency at.. Pull the Dollar and the Euro from it as a backing and boom it has no backing but for a batering coin. The GOVs know this.
The blurred part is that companies like VISA look at cypto or anything else that is not a recognized country fiat as a commodity. I think they do not have a better word for it nor care they just do not trade in commodities so they call it that.