The History of Chinese Currency
How it was Developed
Before Paper Money
The history of Chinese currency spans more than 3000 years. Currency of some type has been used in China since the New Stone Age about 3000 to 4500 years ago. Cowry shells are believed to have been the earliest form of currency used in Central China, and were used during the Neolithic period.
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 (dollars, pesos, etc...) in the late 19th century. The Song dynasty was the first to issue true paper money in 1023, and it did so at first cautiously, issuing small amounts, used in a limited area, and good for a specific time period.
The Looks of Them All
Before
This is the Chinese Copper Coin; the form of currency in China before paper money was invented. The hole in the middle was used to strap all of the coins that you own onto your belt so that they would be easier to carry.
In the Beginning
The first from of Chinese paper money; first design
Now
This is the form of money that the Chinese use currently
A New Form of Currency
Why Create Paper Money?
An early use of paper was for letters of credit transferred over large distances, a practice which the government quickly took over from private concerns
- The first real use of a paper money system was in Szechwan province, an isolated area subject to frequent copper shortages.
- It had reverted to an iron currency of coins, and paper was a welcome option. Iron banks sprang up to facilitate the trade, and the government was quick to take over the profitable enterprise