While numismatic collecting tends to focus primarily on coins, many people also have an interest in collecting world paper money. The basic monetary unit in Canada and many other countries around the world is the dollar. While many countries worldwide still use a paper dollar bill, Canada has not for over 30 years. This makes Canadian dollar bills somewhat rare and more collectible. 

What Countries Use the Dollar?

The dollar is the basic monetary unit in Canada, the United States, and other current or former British colonies, such as Australia and New Zealand. Many countries in the Caribbean also call their own monetary units dollars. Some of these countries, including Jamaica, Barbados, and the Bahamas, have their own dollars, while others use the East Caribbean dollar. Liberia is an African country established by free Black emigrants from the United States and Canada, so perhaps it is not surprising that it uses the dollar. However, it is not the only African nation that does so. Namibia and Zimbabwe each have their own dollar. The dollar is also used in South America, Central America, and the South Pacific. 

Where Does the Word “Dollar” Come From?

The word “dollar” has roots in Europe dating back to the 16th century. Count Hieronymus Schlick opened a silver mine and coin minting operation in a small Bohemian town. Today, that town is part of the Czech Republic, but earlier in history, it was known by its German name of Sankt Joachimsthal. Count Schlick referred to the silver coins that were minted there as Joachimsthalers. This was gradually shortened to thalers or talers. 

Through European trade, thalers started showing up in other countries, and their name evolved in the process. People in the Netherlands referred to them as “daalders,” while Scandinavians called them “dalers.” At the same time, Europeans started using “thaler” and its variations to refer to coins with a similar appearance but originating from other areas of Europe, such as the Spanish peso. 

During the 18th century, a shortage of British money led to many of these foreign coins being circulated in the North American colonies. After the American Revolution, when the United States became a separate country it opted to call its basic unit of currency the dollar instead of the pound to further differentiate it from Britain. 

What Is the History of the Canadian Dollar Bill?

In the 19th century, the British government wanted to facilitate trade within the Empire by forcing all colonies to use sterling. However, given strong local trade links with the United States, the colonial governments of Canada preferred linking their currencies to the American dollar. The Canadian government gained jurisdiction over its own coins and money because of the Constitution Act of 1867. Today, the Royal Canadian Mint operates facilities in Ottawa and Winnipeg. The former facility produces numismatic coins while the latter produces those used in circulation. 

In the days when each colony printed its own paper money, its value was not stable, and people didn’t place as much trust in it as they did coins made of precious metals. Nevertheless, Canada printed its first paper money in 1870, three years after Confederation. The one-dollar bill was one of the earliest denominations, but it wasn’t the smallest denomination. There was initially a 25-cent bill as well that remained in use until 1935, known colloquially as Shinplasters. 

The last Canadian banknote series to include the one-dollar bill was the Scenes of Canada series in 1974. The one-dollar “loonie” coin was introduced in 1987. Two years later, the one-dollar note was no longer printed. 

What Makes Dollar Bills Collectible?

Paper money tends not to last as long as coins unless steps are taken to preserve it. Therefore, historic bills, such as the Canadian dollar bill, can be quite valuable. Colonial Acres Coins carries a range of world paper money as well as common and rare Canadian banknotes. Let us help you start a new collection or add to an existing one.