The dollar bill is one of the most recognized objects in the world, yet many people rarely stop to think about its origins, its secret security features, or the surprisingly intense history behind its creation. From Revolutionary War sabotage to its original mission to fight counterfeiters, the story of the U.S. dollar is far more complex than the simple green note in your wallet.
Here are five surprising facts you probably never knew about American currency:
1. The U.S. Dollar Was a Copycat
If you look at the origins of the U.S. dollar, you’ll find its true ancestor isn’t an American invention at all, but the Spanish milled dollar—the legendary “piece of eight.”
During the colonial era, the Spanish silver coin was the most common and reliable currency circulating in North America. When the U.S. needed to establish its own monetary system, the Coinage Act of 1792 officially modeled the new U.S. dollar after the Spanish coin, establishing it as the official unit of value and setting the standard that one dollar equaled 100 cents. The design and silver content of the Spanish coin were so trusted that the new nation simply adopted its value to ensure confidence in the fledgling American economy.
2. The Secret Service Was Born to Fight Counterfeiters
Today, the U.S. Secret Service is famous for protecting the President and other high-ranking officials. However, its original, primary, and continuing mission has absolutely nothing to do with presidential protection.
The agency was founded in 1865, immediately following the Civil War, when counterfeiting was rampant and destructive to the nation’s financial stability. At that time, it was estimated that one-third of all currency in circulation was fake! The Secret Service was established under the Treasury Department with the sole purpose of stabilizing the economy by tracking down and prosecuting counterfeiters. Presidential protection only became a permanent part of its duties much later, after the assassination of President William McKinley in 1901.
3. Britain Successfully Sabotaged Our First Currency
During the Revolutionary War, the Continental Congress needed a way to fund the fight against Great Britain, so they issued the nation’s first paper currency, known as Continentals. Unfortunately, this money failed spectacularly.
Not only did Congress lack the ability to effectively tax and back the currency, but the British actively engaged in a strategy of economic warfare. They printed massive quantities of perfect, high-quality counterfeit Continentals and flooded the American market. This deliberate sabotage, combined with mismanagement, led to the currency becoming virtually worthless, giving rise to the famous phrase, “not worth a Continental.”
4. The Federal Reserve Note Is Relatively New
The dollar bills you use today are Federal Reserve Notes, but these only became the dominant form of currency in the 20th century. Before 1913, the U.S. currency system was a chaotic patchwork of gold and silver coins, certificates, and notes issued by thousands of private banks.
The Federal Reserve Act of 1913 centralized the banking system, creating the Federal Reserve (the Fed) and giving it the authority to issue a standardized currency that was uniform and backed by the federal government. This change slowly replaced the older, fragmented system, providing the stable, uniform bills that eventually became the backbone of the modern global economy.
5. Designs Are Evolving to Reflect National Identity
U.S. currency designs are not set in stone; they are constantly being updated to reflect the nation’s security needs and its evolving sense of identity. While portraits of figures like Lincoln and Washington have been relatively static, the U.S. Treasury has announced plans for significant redesigns to include more diverse historical figures.
A high-profile example is the ongoing plan to feature Harriet Tubman on the face of the $20 bill, replacing Andrew Jackson. This and other redesigns reflect a conscious effort to acknowledge a broader spectrum of American history and identity on its most common public symbols. The changes also continuously incorporate cutting-edge anti-counterfeiting technologies like microprinting and color-shifting ink to maintain the currency’s integrity.