When was paper money invented?

Answer 1

It is widely accepted that the first paper money originates from China approximately 1400 years ago.

At this time, all money took the form of metal coins which has a hole in the middle allowing them to be strung on a chord and worn around the neck. The emerging merchant class in China found that their wealth made the weight of coins impractical to carry so they deposited the coins with a trustworthy person to look after on their behalf. In recognition of the coins, the trusted person would give the merchant a slip of paper recording the value of coins deposited, which he could use to recover the coins. Eventually, these early 'promissory notes' developed into slips of paper that could be used as money equivalents, with the person holding the notes able to go to the trustworthy person who held the actual physical coins to encash the paper. The local usage if 'jiaozi' paper money of this sort was recorded in 600 AD.

The first national paper notes date from around 960AD when the Chinese Song Dynasty issued paper currency after a shortage of copper limited coin production.

Paper money was first introduced by the Chinese. It is documented that the Chinese began using paper as currency after the sixth century A.D.

Answer 2

The first known banknote was developed in China during the Tang and Song dynasties , starting in the 7th century.