America has had a history of fiat currencies dating back as far as the American Revolution. Even before America’s colonists won their independence from the British. It was in 1775 that the Continental Congress attempted creating its first fiat currency, the Continental.

During the early days of the Revolutionary War the American colonists were having serious trouble financing the revolution. Efforts to acquire additional money from England were slow at best. Furthermore the Continental Congress was forbidden to directly tax the colonists for war funding efforts. A solution for this immediate problem was finally created. The answer was to issue paper currency or bills of credit. This new money was called “Continental Currency” nicknamed Continentals, which became America’s first attempt at the use of fiat currency in the new America. At the time there were many congressmen who realized that over issuing paper currency was just a hidden form of taxation…

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