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Universidad Autónoma de Nuevo León

Facultad de Contaduría
Pública y Administración

Licenciatura en Negocios
Internacionales
Plan de estudios 430

Administración de
producción
Evidencia #1.

“El Real de a Ocho”

Grupo 3CI

Usuario Nombre
2134079 RODRIGUEZ ALARCON LARISSA ANAHI

Docente: Armando Salas Escamilla

SAN NICOLÁS DE LOS GARZA, N. L. A 12 DE NOVIEMBRE DEL

2023
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Index

Introduction......................................................................................................3
Origin.............................................................................................................3
The 8 Reales expansion through the world................................................4
The effects of this coin..................................................................................5
Conclusion.........................................................................................................5
References......................................................................................................6
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Introduction.
In the global trade and economic history, few currencies have wielded as much influence
and power as the Piece of eight, which is a silver coin that measures approximately 1.5
inches and is worth eight Spanish reales. During the 16 th century, under the reigns of
Charles I and Philip II, the Spanish Empire introduced the Piece of Eight.

This coin became the cornerstone of international commerce during the Age of Exploration
and the basis for many of the other currencies in the Spanish colonies such as Argentine,
Bolivian, Chilean, Colombian, Cuban, Ecuadorian, Costa Rican, Dominican, Mexican,
Guatemalan, Honduran, Paraguayan, Nicaraguan, Puerto Rican, Salvadoran, Philippine,
Peruvian, Uruguayan and Venezuelan pesos.

Its significance is often overlooked by most of the people, but what might appear as a
simple coin actually held a profound influence, circulating across all the continents. It did
not just facilitate transactions but also became an important progress in the economic
history.

In this essay, I will focus on explaining how a simple silver coin became a powerhouse, and
also about its origin, creation, meaning and impact with the intention of exploring and
discovering how it and a grand empire shaped the world we know today.

Origin.
The Piece of Eight, a silver coin that was minted by the Spanish empire during the colonial
period, in the 16th century, due to the riches that were brought by the conquest of America
became the central component of the economy in 1497 after the Catholic Monarchs”
monetary reform.

The origins of the piece of eight, as according to my research, can be traced back to the late
15th centrury in Austria, when Sigismund of Habsburg introduced the minting of “the
gulildiner” which were large silver coins weighing 31.93 grams. Although they were not
widely accepted, these coins served as inspiration for Bohemia, leading to the creation of
“the thaler” in 1520, weighing 27 grams. The success of this coin in Germanic lands
marked the beginning of a trend towards larger silver coins and set the stage for further
developments in coinage.
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In Spain, the Catholic Monarchs, Ferdinand II of Aragon and Isabella I of Castile,

attempted to modernize the Castilian monetary system through the Pragmatic of Medina del
Campo in 1497 due to several reasons, primarily to regulate economic stability by creating
a reliable medium of exchange, also to enhance Spain´s ability to conduct international
trade and for creating a uniform and regulated coinage system that would help build
confidence and trust among the population, since people were more likely to accept and
implement the use of coins that had a consistent weight, purity and value. This regulation
established the characteristics of silver reales, ensuring the weight and purity that would
make them accepted in the world. However, the concept of minting multiples of the real,
such as the piece of eight, was not yet implemented. Despite this, the Pragmatic of Medina
del Campo played a very important role in establishing the foundation for Spain’s future
coinage reforms.

It was Charles I of Spain, the grandson of the Catholic Monarchs, who took the idea of the
German “thaler” and expanded it across the territories under his rule. In 1537, Charles I
authorized the minting of reales of two, four, and eight, giving birth to the piece of eight as
a standardized coin. These coins, were not only fundamental in facilitating trade but also
served as potent symbols of the Charles I´s authority and influence.

The 8 Reales expansion through the world.

During the modern era, the Mediterranean lost its position as the primary European trading
area, paving the way for Spain’s exploration and expansion across the world. With huge
reserves of silver from New Spain and Peru, Spain possessed this coin, which became a
dominant form of currency due to its consistent characteristic and abundant production.

This coin quickly gained prominence and popularity, especially in regions demanding
precious metals. These coins arrived to England, France, and the Netherlands. The
Netherlands later emerged as a financial powerhouse, and Amsterdam became a crucial
center for precious metal trading.

Dutch and British East India Companies also played a crucial role in expanding the global
circulation of the 8 reales. Their voyages along the Cape route to Indonesia and India,
facilitated the spread use of these coins in Asia. The establishment of Spanish trading posts
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in the Philippines boosted the circulation of the 8 reales in China, building its position as a
major recipient of Spanish currency.

In the Americas, the 8 reales served as different forms, from foreign trade to the operation
of the Royal Treasury and defense against pirates. The widespread use of the 8 reales in the
Americas reinforced its global significance and impact on the world trade and economic
stability.

The effects of this coin.

The piece of eight coin, held huge influence and impact on the global economy from the
late 16th century until the mid-19th century. Its effects include a list of important events such
as global currency standard, circulating in South America, Asia, Europe and the
Mediterranean ports due to its consistent design and silver content that made it widely
accepted. It also enhanced economic prosperity for Spain, dominated in international trade;
most Asian and European countries used this coin for their transactions, and it served in the
United States as official tender during the Civil War. It also helped for standardization and
fractional purposes, since it was often divided into smaller pieces (bits), each equivalent to
one Real.

Conclusion.
The Piece of Eight influence´s extended across the whole world, this coin not only
facilitated transactions but also served as a symbol of economic progress and stability. Like
many powerful currencies of its time, the Piece of Eight eventually faced its decline. The
advancements in banking, the rise of paper money, and other circumstances contributed to
its gradual obsolescence. As economies modernized, the need for a more standardized and
easily manageable currency led to the replacement of the Piece of Eight by newer and more
practical forms of money. Despite this, its legacy remains, letting us remember of a time
when a simple silver coin held the key to global trade and economic prosperity, leaving an
indelible mark on the history of international commerce.
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References
Wagner, K., & Taylor, L. B. (1998). Pieces of eight: Recovering the riches of a lost
Spanish treasure fleet. Florida Classics Library.

Coles, N., & Zandy, J. (2007). American working-class literature: An anthology.

Oxford University Press.

Flynn, D. O., Giráldez, A., & Glahn, V. R. (2003). Global Connections and
Monetary History, 1470-1800. Ashgate.

Talty, S. (2008). Empire of Blue Water: Captain Morgan’s Great Pirate Army, The
epic battle for the americas, and the catastrophe that ended The outlaws’ bloody reign.
Three Rivers.