Issuance Definition - Glossary

Issuance is the process of creating and distributing new cryptocurrency tokens or fiat currency into circulation.

Issuance is the process through which new cryptocurrency tokens or fiat currency are introduced into the market. In the context of cryptocurrencies, issuance often occurs through mining or minting, depending on the blockchain's protocol. For fiat currencies, issuance is typically managed by central banks, which control the supply by printing money or adjusting interest rates. Issuance affects supply, impacting value and inflation. Understanding issuance is crucial for evaluating a currency's potential growth and monetary policy. It determines how and when new units enter the ecosystem, affecting market dynamics and user confidence.