This Day in History | Dollar was Established by The US Congress | Ritam English

On April 2, 1792, the United States Congress established the currency that is now the most widely used in the world: the dollar. Before 1792, Americans faced a major currency crisis, where transactions were primarily conducted using gold or silver. However, on April 2, 1792, the Coinage Act was passed, leading to the establishment of the U.S. Mint, responsible for minting coins and controlling their circulation worldwide. The first official American currency made from silver was the dollar. Although the intention of the law was to simplify transactions, it didn’t quite achieve that goal. People had to bring their silver to the mint to be coined into dollars, which was a lengthy process and caused significant inconvenience. In response, local banks began issuing their own currency in exchange for gold or silver. In 1861, the U.S. Congress found a practical solution by introducing a currency that wasn’t dependent on gold or silver, marking the first issuance of paper currency under government control in America.