decimalization

Decimalization is the process of converting a system of currency or measurement to a base-10 decimal representation. It also refers to converting numbers from non-decimal representations into decimal form.

In currency, decimalization typically means adopting a monetary subdivision that is a power of ten, most commonly 100 subunits per unit. This replacement often ends non-decimal units such as pounds, shillings, and pence or marks with dollars and cents. The change is usually accompanied by public education, new coins and banknotes, and transitional pricing.

Historical examples include the United Kingdom, which decimalized on Decimal Day, February 15, 1971; Australia, which introduced the dollar and cent in 1966; and New Zealand, in 1967. In the late 19th century, Sweden decimalized with the krona and 100 öre. Many countries followed a similar path during the 19th and 20th centuries, as international trade and accounting benefited from a uniform decimal structure.

The transition typically improves arithmetic, pricing, and accounting, and it facilitates international trade and currency conversion. Transitions can involve dual pricing and rounding during the changeover and require public education and changes to coins and banknotes.

Outside currency, decimalization can refer to expressing numbers in decimal form, such as converting binary or fractional numbers to base-10 representations for computation, finance, and statistics. Overall, decimalization has played a central role in simplifying monetary systems and numerical computations in the modern era.