Canada introduced the Canadian dollar in 1858, replacing the Canadian pound as its main monetary unit.
Before decimalisation, British North American colonies commonly used pounds, shillings, and pence alongside Spanish dollars and other foreign coins. Canada’s 1858 decimal currency legislation moved the Province of Canada toward a dollar-based system and aligned its money more closely with the United States and other dollar economies.
The Canadian dollar was divided into 100 cents. The first Canadian coins denominated in cents and dollars were issued in 1858, although monetary practice remained mixed during the transition. Confederation in 1867 helped create a broader national framework for Canadian currency.
The Canadian dollar should not be confused with the earlier Spanish dollar, which circulated widely in North America and influenced dollar denominations. Canada later issued distinctive banknotes and coins, but the dollar unit introduced in the nineteenth century remains the basis of the modern currency.