Decimal currency is a system of money where the basic unit is divided into ten equal parts, making calculations simpler. For example, in the United States, the dollar is divided into 100 cents. This structure allows for easy conversion and understanding of values, as each denomination is a multiple or fraction of the base unit. Most countries around the world use decimal currency, which helps facilitate international trade and commerce. The transition to decimal systems often replaced older currencies that were based on more complex divisions, such as the British pound, which was historically divided into 20 shillings.