Derek Moran
FIAT MONEY:
Money (e.g., bank notes and coins), that is legal tender by GOVERNMENT DECLARATION, and is not backed by gold or silver. Its intrinsic value is divorced from its monetary face value (i.e., the value stated on it), which rests on public confidence in the issuing authority�usually the central bank.
NOTE: All currency in circulation in Canada is fiat money.
http://www.bankofcanada.ca/publications-research/glossaries/glossary/