A Fist Full of Dollars

Etymology

The term "dollar" has its roots in the German word "thaler," originating from the town of Joachimsthal in Bohemia, where silver coins were first minted in 1520. These coins, known as "joachim thalers," eventually became "thalers" and spread across Europe, morphing into "dollars" in Scandinavia and England 1. As the coin's influence grew, the term "dollar" became a generic term for large silver coins, including the Spanish "pieces of eight," which were similar in size to the thaler 2.

The thaler was a large silver coin about the size of an American silver dollar, to use a comparison.

--- Gary Arndt

This evolution highlights the adaptability of currency names as they traverse different cultures and regions.

   

American Adoption

The adoption of the term "dollar" in the Americas was influenced by the widespread use of Spanish and Dutch silver coins during the colonial period. The Spanish dollar, in particular, was prevalent due to Spain's extensive silver production and influence in the Western Hemisphere 1. When the American colonies sought independence, they issued paper money backed by Spanish dollars, leading to the adoption of the term "dollar" for the new United States currency 3.

The US dollar was the second currency after the Russian ruble to become decimalized.

--- Gary Arndt

This decision was further solidified by Alexander Hamilton's evaluation of the silver content in Spanish coins, which set the standard for the US dollar's silver content.