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A currency needs to be generally accepted and made of a valuable material like gold or silver, or backed by the government like the gold standard. If not, it is a fiat currency with no intrinsic value but guaranteed by the government. Major currencies like the euro and U.S. dollar are fiat currencies. Currency also needs to be durable and not decay over time, like the U.S. dollar made of 75% cotton and 25% linen, which can get wet, does not tear easily, and lasts a long time.
