Dollar symbol history: Different theories, from simple to mysterious

The myth of the connection with the United States

Many people mistakenly believe that the dollar sign originated from the superimposition of the letters U and S, which symbolize the United States. This idea became popular thanks to the writer Ayn Rand, who in her novel Atlas Shrugged stated that the $ symbolizes freedom and achievement. She claimed that the sign was formed from the initial letters of the United States. However, this theory does not stand up to scrutiny.

Until 1776, the region was called the United Colonies of North America, and the dollar symbol probably appeared even earlier. There is also a similar version that $ meant "unit of silver", but this theory is also considered false. Despite the popularity of Rand's idea, researchers emphasize that the dollar sign had a completely different evolution.

Bas-relief depicting the Pillars of Hercules (photo: Wikipedia)

The theory of the Pillars of Hercules

One of the less common but interesting theories links the $ symbol to the mythological Pillars of Hercules. In the Middle Ages, these pillars were depicted on Spanish coins, wrapped in ribbons that formed a shape similar to the dollar sign.

Two vertical lines symbolized the pillars themselves, and the ribbon was the curved part. This version looks attractive because it resembles ancient symbolism. However, most modern historians doubt its authenticity.

The Pillars of Hercules were more of an artistic element than a source for the $ sign. Nevertheless, the idea continues to exist as a romantic but unlikely theory.

The Spanish peso as the basis of the symbol

The most common and reliable theory links the $ symbol to the Spanish peso. Before the dollar was introduced in 1785, the peso was widely used in America, even in the British colonies. Due to its stability and high silver content, the peso became the main currency of the region.

It was usually written abbreviated as Ps, where the letters P and S eventually merged into one character. Gradually, the curved part of the P turned into a vertical line, creating the modern dollar sign. This evolution looks natural and is confirmed by historical documents. This theory is supported by the US Federal Reserve.

Evolution of the dollar symbol (image: Wikipedia)

The number 8 and organic evolution

Another theory explains the origin of the dollar symbol by linking it to the number 8. The Spanish peso was called the "piece of eight" because it was equal to eight reales, a smaller currency. Some researchers suggest that the dollar sign was originally a representation of two superimposed eights that gradually simplified to its current form.

Regardless of which theory is correct, the origin of the symbol was organic and indirect. It emerged from years of use in documents and receipts. The symbol developed gradually, adapting to the needs of the time. As in the evolution of living organisms, its form was established through constant repetition and use.

Read also, which 8 travelers could have discovered America before Columbus.

Sources: Live Science, History, Wikipedia.