1971Reputable sourceWell documented
The End of Gold: The Age of Fiat Money
On the timeline · around 1971 · The Modern Age of Money
What happened
In August 1971, facing pressure on the dollar, President Richard Nixon suspended the dollar's convertibility into gold, ending the Bretton Woods system. The world's major currencies became 'fiat money' — money that has value not because it is backed by metal, but because governments declare it legal tender and people trust it.
Why it matters
The move to fiat money completed a long journey away from commodity money. Today, virtually all the world's money is fiat, its value resting entirely on confidence and the policies of central banks.
Sources
- Federal Reserve History. Nixon Ends Convertibility of U.S. Dollars to Gold · Reputable source