Paper Money Originated In China

 Paper Money Originated In China

Indeed, paper money has a fascinating history, and its origins can be traced back to ancient China. Let’s delve into the intriguing tale of how paper money came to be:

1. Earliest Money:

   • The earliest known form of money was a cast copper coin from the 11th century BCE in China. These coins were used for trade and value across the globe.
   • However, carrying large quantities of metal coins was cumbersome. Merchants had to deal with heavy strings of coins or engage in direct bartering.
   • Copper coins even had square holes in the middle so they could be threaded onto a string for easier transport.

2. Tang Dynasty Innovation:

   • During the Tang Dynasty (618–907 CE), merchants began leaving their heavy coin strings with trustworthy agents.
   • These agents issued promissory notes on paper, representing the deposited coins. Sellers could redeem these notes for actual coins.
   • While this system simplified cartage along the Silk Road, it wasn’t true paper currency yet.

3. Song Dynasty’s Paper Money:

   • In the Song Dynasty (960–1279 CE), the government licensed specific deposit shops where people could leave coins and receive notes.
   • By the 1100s, the Song authorities took direct control and issued the world’s first proper, government-produced paper money called jiaozi.
   • These notes were printed using woodblocks and had various security features to prevent counterfeiting.
   • In 1265, the Song government introduced a truly national currency, backed by silver or gold, available in denominations from one to one hundred strings of coins.

4. Mongol Influence:

   • The Mongol Yuan Dynasty, founded by Kublai Khan, issued its own form of paper currency called chao.
   • The Mongols even brought this concept to Persia, where it was known as djaou or djaw.

In summary, paper money emerged in China during the 11th century CE, nearly two millennia after the earliest use of metal coins. While it made transactions easier, it also posed risks like counterfeiting and inflation¹²³. 📜💰