Czech Town Jáchymov: The Birthplace of the Dollar and Its Complex Legacy

Jáchymov: After more than 230 years, the US stopped minting the penny this week. But long before that, the first dollar was coined – and it was created in a one-road town far away from the USA.

According to BBC, the US dollar is the most widely used currency in the world, serving as both the primary de facto global tender and the world’s unofficial gold standard. The Federal Reserve states that 58% of the world’s financial reserves are held in US dollars, surpassing the euro, yen, and renminbi combined. Despite its global acceptance, the dollar is not used in Jáchymov, a small Czech town near the border with Germany, where the currency traces its origins back to 1520.

Jáchymov, nestled in the Krušné hory mountains of Bohemia, is where the dollar’s earliest form, the “thalers,” was minted. Docent Jan Francovic at the Royal Mint House museum in Jáchymov notes the irony that the birthplace of the dollar does not accept it, as visitors must use koruna, euros, or sometimes Russian rubles. The town, hosting a modest population of 2,300, is part of a UNESCO World Heritage site yet remains relatively unknown.

Local historian Jaroslav Ochec explains that the town’s journey began in 1516 when Count Hieronymus Schlick discovered silver and started minting coins called “Joachimsthalers,” named after the area’s patron saint of miners. These coins, known as thalers, became influential across Europe due to their standard weight and diameter, which facilitated acceptance in neighboring regions.

By the mid-16th century, Jáchymov had transformed into a bustling mining hub, with its thalers spreading widely across Europe. Even after the local silver deposits were exhausted, the thaler’s reputation endured, influencing coinage standards within the Holy Roman Empire and beyond.

The thaler’s legacy extended far and wide, with its name and concept adopted by various countries’ currencies, ultimately influencing the name of the US dollar. The Dutch “leeuwendaler” played a crucial role in this transition, as it spread to the American colonies and evolved into what is now the US dollar.

Jáchymov’s mines, however, hold a darker legacy. The town’s uraninite deposits, dubbed “Pechblende,” were later found to contain radioactive elements radium and polonium, discovered by physicist Marie Curie. This set the stage for Jáchymov’s involvement in the development of nuclear weapons, with its mines providing essential materials for the atomic bomb.

Between 1949 and 1964, the town became a Soviet gulag, where prisoners extracted uranium to fuel the USSR’s nuclear ambitions. Today, Jáchymov is working to reconcile its history, with efforts to restore its architecture and transform its mines into therapeutic spas.

Despite its complex past, Jáchymov remains a significant yet understated landmark in the history of the dollar. Visitors to the Royal Mint House museum can glimpse a framed George Washington dollar bill, a nod to the town’s historic contribution to global currency.

This story was originally published in 2020. It has since been updated with new information.