Paper money was invented in China in the 9th century, but the base unit of currency remained the copper coin. Copper coins were used as the chief denomination of currency in China until the introduction of the yuan in the late 19th century by the Republic of China.
Who introduced paper money in China?
The Song dynasty was the first to issue real paper money in 1023 and the most famous Chinese issuer was Kublai Khan, a Mongol leader, in the 13th century.
What were the Chinese origins of paper money?
Paper bills were first used by the Chinese, who started carrying folding money during the Tang Dynasty (A.D. 618-907) — mostly in the form of privately issued bills of credit or exchange notes — and used it for more than 500 years before the practice began to catch on in Europe in the 17th century.
When did the Chinese start using paper money?
Keren Su / CORBIS. Paper bills were first used by the Chinese, who started carrying folding money during the Tang Dynasty (A.D. 618-907) — mostly in the form of privately issued bills of credit or exchange notes — and used it for more than 500 years before the practice began to catch on in Europe in the 17th century.
Who was the first person to use paper money?
The First Paper Money Keren Su / CORBIS Paper bills were first used by the Chinese, who started carrying folding money during the Tang Dynasty (A.D. 618-907) — mostly in the form of privately issued bills of credit or exchange notes — and used it for more than 500 years before the practice began to catch on in Europe in the 17th century.
Why was paper money used in the Song dynasty?
By the end of the Song dynasty paper money equivalent to 70 million strings of cash were being printed and became preferred to coins; the rulers imposed tight control over the supply of paper money so it could be trusted by the people. The Yuan dynasty tried to maintain the paper currency but inflation proved ruinous.
When did the Yuan dynasty stop printing paper money?
The short-lived Yuan Dynasty printed increasing amounts of the currency, leading to runaway inflation. This problem was unresolved when the dynasty collapsed in 1368. Although the succeeding Ming Dynasty (1368–1644) also began by printing unbacked paper money, it suspended the program in 1450.
