11th century CEReputable sourceWell documented
The First Paper Money
On the timeline · around 11th century CE · Paper Money and Banking
What happened
Having invented paper centuries earlier, China also pioneered paper money. Under the Song dynasty, merchants weary of hauling heavy strings of iron coins began using paper deposit receipts, and the state took over their issue — creating the world's first government-backed paper currency.
Why it matters
Paper money was a monetary leap that Europe would not match for centuries. It also brought the first experiences of over-issue and inflation, foreshadowing the promise and peril of money not tied to precious metal.
Sources
- World History Encyclopedia. Paper in Ancient China · Reputable source
Related timelines
- History of China → — Paper money, a Chinese invention