The evolution of US dollars can be traced back to the Continental Congress in the late 18th century, which authorized the printing of paper money known as Continental currency. However, the excessive issuance of this currency led to hyperinflation, rendering it worthless. The need for a stable and reliable currency became evident, leading to the establishment of the United States Mint in 1792. This marked the official birth of the US dollar as a national currency.

The early years of the US dollar were marked by the issuance of various banknotes by different banks. The lack of a central banking system resulted in a fragmented monetary landscape. It was not until the mid-19th century that the US government took significant steps towards centralizing the currency. The introduction of the National Banking Act in 1863 established a national currency and a system of federally chartered banks, bringing about a more unified monetary system.

With the onset of the Civil War, the need for a stable currency became even more pressing. In 1862, the US government issued the first greenback, a form of paper money not backed by gold or silver. The greenbacks played a crucial role in financing the war effort and were eventually redeemed for gold after the war. This marked a significant shift towards fiat currency, where the value of money is not directly linked to a tangible asset.

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