The Cayman Islands were discovered by Christopher Columbus in 1503. The Cayman Islands were ceded to Britain by Spain in 1670 when they became a part of Jamaica. The Cayman Islands became a separate dependency of the United Kingdom on July 4, 1959. It has been a British crown colony since 1962, and has had some self-government since 1972.
Canadian and US fractional coinage (USD) were legal tender in Jamaica until October 23, 1863 and silver dollars to 1876. British Pounds Sterling (GBP) were also legal tender. During the 1870s, Jamaica began minting its own local coins and local banks issued banknotes. The Jamaican government began issuing Pound (JMP) banknotes from March 1920 until 1961. British West Indies Dollars (XBWD) were legal tender in Jamaica beginning in 1951, though they had limited circulation. The Bank of Jamaica began issuing banknotes in 1961.
The Jamaican Dollar continued to circulate in the Cayman Islands after it became a separate UK dependency and after Jamaica gained its independence. On September 8, 1969, Jamaica replaced the Jamaica Pound with the Jamaica Dollar with 2 Jamaica Dollars equal to 1 Jamaica Pound. The Cayman Islands Dollar (KYD) replaced the Jamaican Dollar at par in 1972. The Cayman Islands introduced a currency board, linking the Cayman Island Dollar to the US Dollar at 1.20 USD = 1 KYD. Banknotes were issued by the Cayman Islands Currency Board from 1972 until 1998, and currently by the Cayman Islands Monetary Authority. | 
