Who Invented Currency

An article by Peter Pierce    Comments Off

Many specimens of recorded history reveal that Chinese were the first to make use of currency. The use of both coin and paper money can be traced back to China. Around 650 A.D the Emperor of China issued paper tokens with assigned values for general use. The Chinese initially traded in shells and later in coins made out of various natural products such as wood, stone, bone, copper, lead etc. Bronze coins fashioned in many interesting shapes like small knives and spades were also used as currency around 5th century B.C.

A promissory note called the ’flying money’ became quite popular in the Sichuan province of China during the Song Dynasty (960-1279). In 1024 the government appropriated the production of these notes and made them the first official paper money currency in the world. Many forms of paper money became the dominant currency of China by the end of the twelfth century. The Yuan Dynasty (1271-1368) marked the introduction of the first currency which was not backed by any precious metals.

Swedish were the first ones in Europe to issue paper currency in the 17th century. All other European countries followed Sweden and issued paper notes soon after. Stockholms Banco was the first to publish bank notes in Europe in the year 1661.From the 17th-19th century the use of gold coins as currency was prevalent in Europe.