You know that money is one of the essential parts of life. So, when was paper money invented? Money, which you use for buying and selling products, was first in the form of gold, silver, or copper coins. This was then replaced by paper money in China, and the entire world later took this up. Let us now enlighten ourselves regarding who invented paper money and how along with the brief history of money.
1. What is the Brief History of Money?
The oldest known coin originated in China, which is a counterfeit copper coin dating from the 11th century BCE. This was turned into the tomb of the Shang Dynasty in China. Coins are made of copper, silver, gold, or other metal. They were used to exchange goods and services all over the world. They were blessed as they were long-lasting, hard to fake, and saved money. (Also read Why are Dimes Smaller than Pennies?)
2. What was the Need for Paper Money?
A few thousand years after the coins were buried in that Shang tomb, Chinese merchants, buyers, and customers had to put up with sports finances or trade various goods at one time. The copper coin was shaped into rectangular holes in the center. For large transactions, consumers calculate the amount where the variety of coins was counted. It turned out to be affordable but it was done with the help of a poorly controlled machine. The biggest drawback is that the more you have, the harder it becomes. So, this became the reason for the invention of paper money.
3. When was Paper Money invented?
Who invented paper money? Well, during the Tang Dynasty(618–907 CE), traders began to leave heavy coins in the hands of a straightforward merchant, who would then pay a small sum of money to the merchant on a small piece of paper. You may also check out who invented money?.
- Paper, a kind of pledge name, can then be sold on the property, and the seller can go to the agent and use caution with cash. However, these secretly produced pledge notes are no longer real paper money.
- At the beginning of the Song Dynasty (960–1279 CE), the authorities granted licenses to certain stores where people could leave their coins and take notes.
- In the 1100s, Ngoma authorities decided to take direct control of the press, issuing the world’s first patent and the first paper currency. This currency has been renamed the jiaozi. (Also read Who invented Paper and When?)
4. What is the History of the National Currency?
As it is clear who invented paper money, you must know that the Song Dynasty founded the paper money printing industry with woodblocks and the use of six-color ink. (See Why did China devalue its currency in August 2015?)
- To prevent counterfeiting, factories are located in Chengdu, Hangzhou, Huizhou, and Anqi. All different fiber blends have been used in their paper to prevent counterfeiting.
- Early notes expire after 3 years and can be used most effectively, especially in the Song Kingdom regions.
- In 1265, the Song government introduced a national currency.
- It was printed for most single people, used throughout the empire, and backed by silver or gold.
- It would be sectarian and have between one and a hundred characters.
- This foreign currency lasted only 9 years because the Song Dynasty moved and fell to the Mongols in 1279. (Also read How Much Money Do Banks Hold?)
5. What is the Mongol Effect?
The Mongol Yuan Dynasty, founded by Kublai Khan (1215–1294), has issued its own foreign currency called Chao.
- The Mongols introduced them to Persia when it was called djaou or djaw.
- The Mongols also portrayed Marco Polo (1254–1324) during his 17-month stay in the courtroom of Kublai Khan, where he underwent a dramatic change in the presidential-style forex concept.
- However, paper money was no longer backed by gold or silver.
- The interim Yuan Dynasty revealed rising forex prices, which are responsible for rising inflation. The issue was resolved when the monarchy fell in 1368. (See Why Is the Illuminati on the Dollar Bill?)
6. Can you Describe the Evolution of Paper Money?
After knowing who invented paper money, read further to understand how paper money evolved.
- Although the subsequent Ming dynasty (1368–1644) started their business with the help of unpublished paper money, it stopped the system in 1450.
- With the advent of Ming technology, silver was converted into foreign currency. (Also read Why do people love gold?)
- This system included large quantities of Mexican and Peruvian ingots brought to China by Spanish investors. In the last two years, in the despair of the Ming dynasty, the authorities published paper money in an attempt to stem the revolt of Li Zicheng and his army.
- China did not print paper money again until the 1990s when the Qing Dynasty began producing yuan. (See Value of Buck Dollar)
Now, you know who invented paper money and why it was invented in the first place. Nowadays, paper money has become really popular. In fact, gold and silver coins have become very obsolete. It is easier to handle paper money than the ancient metallic ones. Please feel free to drop your queries or suggestions in the comment box below. (See Who Invented Tissue Paper?)