Monero is not Fiat "Fiat money is a government-issued currency that's not backed by a physical commodity such as gold or silver. It's backed by the government that issues it." Investopedia
Sure. But the root of the definition is "issued currency that is not blacked by a physical commodity". The fact that the governing body that issues Monero is a collective of developers just make it a more democratic fiat, but fiat non the less
you forget 1 word: "government" Fiat is "government-issued" not simply "issued" (by anyone) that means it's from the people who control the country, I understand what you are trying to tell, but Fiat can't be issued by random people, it should be included in the country's jurisdiction and approved by the president etc etc that's a huge difference
Why can't Fiat be issued by random people? It's of course easier for government to force people to accept their fiat, but that is a technical issue. There are other ways to make people accept Fiat. Religious belief, popularity of the issuer, fear of exclusion (which is kind of force). And what is a government? If a town creates it's own currency, is it not fiat? What about if the GNOME foundation votes on a new currency? Fiat is Money by decree. It's easier for government to create Fiat. But it's not the only way
I see what you mean, FIAT was created by governments during the history, but not only, for example in WW2, in some ghettos a FIAT currency was created by ghettos authorities. In the strict sens, you have right, any community can create a FIAT currency by decree, but it's not the general concept of FIAT currency, we are talking about a nation's government not the GNOME foundation or random civilians
I am pointing this out because Fiat has innate defects regardless of the issuer. Which means that Monero, and certainly centralized Bitcoin, have these defects. Monero is not the golden bullet. Gold is not the golden bullet. Some sort of combination would be superior to both.