The real de a ocho, a Spanish silver coin, was the world’s primary currency between the 16th and 18th centuries. It was renowned for its stability and minimal depreciation over the centuries. This coin became a reference for many currencies of its time and inspired numerous others that followed.
First of all the real de a ocho was a medium of exchange in international commerce. Additionally it served as a global reserve currency. By the 18th century, it is estimated that half of all circulating money worldwide consisted of these Spanish coins.
The first reales de a ocho were minted in the Crown of Castile following the 1497 monetary reform by the Catholic Monarchs. After the conquest of territories now known as Mexico and Peru, the coins were produced in the Americas and shipped in bulk to Spain. Therefore, Spanish ships became a prime target for pirates.
The coin’s influence extended to Southeast Asia, where the Manila Galleon regularly transported silver coins from Mexico to the Philippines for trade with China and the Philippines. The Chinese, who accepted only silver as payment, often marked these coins with Chinese characters to confirm their authenticity.
Thanks to the vast silver mines in Bolivia and Mexico, millions of reales de a ocho were minted over the centuries of Spanish presence in the Americas.
The thirteen colonies and the “Spanish Dollar”
The global reach of the real de a ocho extended to Japan and the British colonies in North America, where it became particularly significant. Its silver content and availability made it more popular than British currency, which was scarce due to restrictive policies imposed by the British Empire on its colonies.
The importance of the real de a ocho was such that the British colonial government accepted it for tax payments and other public expenses, referring to it as the “Spanish dollar.”
The real de a ocho played a crucial role in the American War of Independence. In 1777, when American forces were struggling, a loan of one million reales de a ocho from Spain revitalised their efforts. This financial support, equivalent to billions of today’s dollars, was instrumental in their eventual victory.
From coin to symbol
After the war, the Government adopted the real de a ocho as the official currency of the United States in 1785. Later, in 1792, the U.S. Mint created the American dollar, modelled after the Spanish coin. The symbol of the dollar ($) is also believed to have been inspired by the real de a ocho, with its design echoing the pillars of Hercules from Spanish heraldry.
The influence of the real de a ocho continued into modern times. It is still evident in practices like Wall Street’s historical use of eighths of a dollar in stock pricing, a nod to the coin’s value. This tradition persisted until 1997, a lasting legacy of Spain’s impact on global currency.