Definition of the word peseta

The word "peseta" is the former currency unit used in Spain before the euro was adopted. Its origin can be traced back to the 14th century when Spanish merchants began using a silver coin called the "maravedí" for trade. The maravedí went through several iterations, with the most popular version being the "peso de ocho reales," or "eight-real piece." In the late 1800s, the second Spanish Republic introduced a new currency called the "escudo de 20 rainés," or "20-grain shield." The term "peseta" emerged during this time as a designation for the smallest value of this new currency, which was equal to one-twentieth of an escudo. Its name comes from the relatively light weight of the escudo coin, which weighed approximately 20 grains or around 1.3 grams. The term "peseta" in Spanish translates to "little weight." The peseta became the sole legal tender in Spain during the Spanish Civil War and remained so until the euro replaced it in 2002. Its disappearance was largely due to the economic challenges faced by the Spanish economy in the aftermath of the Franco regime, such as high inflation and debt, which made it difficult for the peseta to maintain its value vis-à-vis more stable European currencies like the Deutsche Mark. The euro, introduced in 1999, replaced the peseta and 12 other national currencies in a bid to boost economic integration and stability across the European Union.