Final answer:
The Articles of Confederation did not mandate a single currency for Congress and the states, leading to economic instability caused by various state-issued banknotes. A shift towards a hard money policy and the establishment of the National Banking Act were key stepping stones to a unified national currency system.
Step-by-step explanation:
The Articles of Confederation did not require a single type of currency for Congress and the states. Under the Articles, the federal government had the power to coin money, but it did not prohibit the states from issuing their own currencies. Consequently, various state banks produced their own banknotes, which led to confusion and difficulties as these were not uniformly accepted. This lack of a standardized currency system contributed to economic instability in the young nation. The Continental, which was the currency issued by the central government, became largely worthless due to rampant inflation and lack of trust.
During the time of Andrew Jackson, Congress began to favor a hard money policy with the Coinage Act of 1835, preferring gold coins over paper money for commercial transactions. It was efforts like these and the eventual passing of the National Banking Act (or National Currency Act) by the Union Congress that set a precedent for a more unified approach to currency. Ultimately, the varied currency policies throughout the nation's early history showcased the complex evolution towards a unified national currency.