page_title: History of the Canadian dollar
section_title: Establishment of the Royal Canadian Mint
hierarchical_section_title: History of the Canadian dollar / Establishment of the Royal Canadian Mint
caption_attribution_description: English: Ian Bennett's BMW can be seen parked to the left of the photo.
context_page_description: Canada has an extensive history with regard to its currencies. Prior to European contact, indigenous peoples in Canada used items such as wampum and furs for trading purposes, which continued when trade with Europeans began.
  Wampum and beaver pelts were considered currency. During the period of French colonization, coins were introduced, as well as one of the first examples of paper currency by a western government. During the period of British colonization, additional coinage was introduced, as well as banknotes. The Canadian colonies gradually moved away from the British pound and adopted currencies linked to the United States dollar. With Confederation in 1867, the Canadian dollar was established. By the mid-20th century, the Bank of Canada was the sole issuer of paper currency, and banks ceased to issue banknotes.
  Canada began issuing its own coins shortly after Confederation. In the 20th century, Canada has issued many commemorative coins into circulation, temporarily replacing current coinage designs. There also exists a long history of numismatic coin issues.
context_section_description: During the British colonial period, the colonies were generally prohibited from minting their own coins. They obtained them by purchase from the Royal Mint in London. After Confederation, the first Canadian coins were also minted in London, but the possibility of a Canadian mint began to be raised in public debates.
  Under the British Coinage Act, 1870, the British government could establish branches of the Royal Mint in overseas British possessions. In 1901, the Canadian Parliament passed an Act to pay for the expenses of a local branch of the Royal Mint, up to $75,000 annually, upon the establishment of a branch by the British government. In 1907, the British government established a branch of the Royal Mint at Ottawa, to be operated at the expense of the Canadian government, by means of a royal proclamation under the Coinage Act, 1870.
  At the formal opening of the Ottawa branch of the Royal Mint on January 2, 1908, the Governor General, Earl Grey, struck the first coin minted in Canada: a silver 50 cent piece, bearing the effigy of King Edward VII. The second coin struck was a one cent piece. As a branch of the Royal Mint, the Ottawa Mint was authorized to mint gold sovereigns, with the same legal status as sovereigns issued by the Royal Mint in Britain. In 1911, the Ottawa branch produced over 256,000 sovereigns.
  In 1931, the Canadian government took over full control of the Ottawa branch of the Royal Mint, renaming it the Royal Canadian Mint and bringing it under the authority of the Minister of Finance. The British government accordingly repealed the status of the Mint as a branch of the Royal Mint.
caption: The Royal Canadian Mint in Ottawa
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