Jáchymov: After more than 230 years, the US ceased minting the penny this week, marking a significant shift in American currency history. Yet, the origins of the dollar, the most widely used currency globally, trace back to the small Czech town of Jáchymov, far removed from the bustling economic centers of the United States.
According to BBC, the US dollar serves as the primary de facto global tender and the world’s unofficial gold standard, with 58% of the world’s financial reserves held in this currency. This figure surpasses the combined total of euros, yen, and renminbi. Thirty-one nations have adopted it as their official currency or named their money after it, while 65 countries peg their currency value to the dollar. Ironically, despite its global reach, the dollar is not accepted in Jáchymov, the very place where it originated over 500 years ago in 1520.
In Jáchymov, visitors will find a sleepy town with a population of 2,300, nestled near the Czech-German border. It is part of a UNESCO World Heritage site, yet remarkably, the town does not flaunt its historical significance as the birthplace of the dollar. The town’s Royal Mint House museum, where the dollar’s earliest ancestors were coined, now only accepts koruna, euros, or sometimes Russian rubles.
The story of Jáchymov and the dollar begins in 1516 when silver was discovered in the region. Local nobleman Count Hieronymus Schlick took the opportunity to mint his own currency, naming it “Joachimsthalers,” which was eventually abbreviated to “thalers.” This currency rapidly spread across Europe, thanks to its standardization and abundant minting.
By the mid-16th century, millions of thalers had circulated throughout Europe, and the currency’s influence extended far beyond the continent. Rulers across Europe modeled their coins after the thaler, inspiring numerous variations, including the Dutch leeuwendaler, which ultimately influenced the naming of the US dollar.
Jáchymov’s mines, initially known for silver, later became infamous for their uranium deposits. The town played a pivotal role in the development of nuclear technology, contributing to the nuclear arms race of the 20th century. Despite its complex history, Jáchymov struggles to reclaim its identity as the birthplace of the dollar while grappling with its past associations with nuclear power and Soviet labor camps.
Today, Jáchymov is undergoing a transformation, with efforts to restore its historical buildings and redefine its legacy. The Royal Mint House museum remains a small but proud testament to the town’s contribution to global currency history, featuring a framed George Washington dollar bill as a symbol of its enduring legacy.