Two Theories – How the Dollar Sign For $ Came to Be

by Petr Novák, ? This article’s information was last verified on this date. If you notice any errors, let us know in the comments. Thank you! :-) Updated 06/08/2023 Fun Facts

The symbol for the dollar, $, is not only used in the USA, but also in Canada and Australia. Its origin is not entirely clear as there are several theories. In this article, we will present two legends about the origin of the symbol for the U.S. dollar.

Theory 1: $ Stands for USA

According to the first theory, the $ symbol was created by simplifying the abbreviation USA (United States), which was used on money bags in ancient times. If you superimpose the letters U and S, you get a double-crossed dollar symbol, with the lower arc of the U merging with the lower arc of the S.

Over time, with the evolution of typesetting, the simple crossing out of the $ became more prevalent.

Theory 2: The Symbol Originally Represented the Spanish Dollar

The second theory dates back to the late 18th century when the USA gained independence. When they created their new currency, they drew inspiration from the Spanish dollar (also known as the peso). The silver dollar coins minted in 1794 shared the same weight, value, and name as the Spanish coins.

Thus, it could be suggested that the Americans adopted the symbol for the dollar from the Spanish. The earliest known appearance of the $ symbol dates back to 1797.