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What is the origin of the dollar?

There is no doubt that the dollar is the most widely used currency in the world. It is currently used for the vast majority of international transactions, and is even considered the reference currency for many countries. But when did the dollar emerge as a currency?

To know its history, we must go back to the fifteenth century. Towards the end of the century a currency emerged in the Tyrol region, an area that encompasses the Alps, between Austria and Italy. This coin replaced the Gold Florin and was called Thaler, this was the abbreviation for Joachimsthaler, which was a rich silver mine from which large amounts of this metal were extracted.

Due to idioms in the german language, the Thaler also came to be known as the Daaler. This was a large silver coin, and its popularity was so great that, from then on, it began to be used throughout Central Europe, calling itself differently in each nation, but retaining part of the term (Rigsdaler, in Denmark, Rijkddaaler, in the Netherlands, Riksdaler in Sweden, Talar in Poland, Tallero in Italy, etc.)

The Spanish conquest in America also introduced the use of valuable metal coins, such as silver. At that time, in the Spanish colonies, the Spanish Peso, or Real de Ocho, was used and its use was also popularized in the British colonies, to the extent that it became known as the Spanish Dollar (Spanish Daller).

As of April 2, 1792, the United States government appropriated the term Dollar and decreed it as the official currency. A couple of years later the first silver coins were minted, similar in size to Spanish coins. This type of currency remained in force until 1935 and was known as the Silver Dollar.

Currently the US dollar is the most important international reserve currency in the world, and the official and de facto currency, not only of the United States, but of many other countries.

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