Decimalization is the process of converting a currency system to one based on the number ten. Most countries now use the decimal system due to ease of calculations. Great Britain converted to decimal in 1971. The US established one hundred cents in a dollar in 1792. Decimalization is done to bring a currency system in line with other world currencies.
Decimalization is the process of converting a pre-existing currency system to one based on the number ten. This process started in the 18th century and most countries in the world now base their currencies on the decimal system. The ease of performing mathematical calculations in calculating different denominations is the main reason why decimalization has gained favor. One of the most significant differentiators in the process was Great Britain, which finally converted its random pound system to a decimal system in 1971.
Most people in the modern world consider a monetary system based on tens and tens. In fact, the decimal system only started to grow in popularity towards the end of the 18th century. With the United States gaining freedom from Great Britain and the French Revolution each taking place during this period, two major international players were soon using the decimal system as the basis for their currencies. As a result, the decimalization movement gained momentum and soon swept most of the world.
Any country that has gone through the decimalization system usually does so to bring its own currency system in line with other world currencies. Although different names for currencies may be used, the essential numerical background of each system is the same. For example, most countries in Europe use the euro as the basis for their currencies, while the United States uses the dollar as theirs. But all these countries use a decimal system to divide the different denominations.
As an example of how decimalization works, imagine the example of the United States. The North American colonists came from a British currency system that had a rather random method of currency allocation, such as the fact that there are 240 pence in a pound, the main British denomination. When the US started coinage in 1792, it established that there would be one hundred cents in a dollar, thus cementing the decimal system for posterity.
Some countries stuck hard to ancient monetary methods before finally succumbing to decimalization. When Britain finally decimalized in 1971, many citizens were upset that it was done without any popular vote. These citizens had become accustomed to the currencies that the country always used and feared the change brought about by the decimal process. As a result, Decimal Day in Britain, which took place on February 15, 1971, was met with skepticism, although it ended when the new system became commonplace.
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