Q&A · 13:45

Why British colonies did not all use sterling

Colonial access to money and the older international role of the Spanish dollar help explain why sterling was not universal.

Question

Why did Britain not use pound currency in every colony?

Short answer

Some colonies used sterling, while others adopted readily available dollar currencies whose history long predated the United States dollar.

Notes

Britain did use pounds in some colonies, but colonial currencies did not all develop under identical conditions. In some places, dollars were easier to obtain and use than sterling when local money systems were established. The word 'dollar' also predates the currency of the United States. Spanish dollars, or pieces of eight, circulated widely because colonial silver gave them reliable content and international acceptance. The terminology may reach back further, possibly to Bohemia, a point the discussion treats cautiously.