Nearly 700 years before Scandinavian country issued the primary European banknotes in 1661, China free the primary usually current currency. In fact, usage of paper notes dates backs even earlier, to the seventh century Tang. for hundreds of years copper coins had been China’s primary currency. so as to hold giant amounts of money, folks hefted around associate ever-increasing variety of those coins–not the simplest, or safest, issue to try to to over long distances.
In a shot to lighten their load, merchants began to deposit these coins with one another and were issued paper certificates for the coin’s worth. The paper was actually lighter. So light, in fact, that it's believed to possess earned the nickname “flying cash,” for its tendency to blow away in an exceedingly stiff wind. the employment of folding money remained in situ for consecutive two hundred years, till a copper shortage and inflation from overrun of the bills forced merchants and dynasty organization alike to issue and settle for paper notes backed by gold reserves—the 1st medium of exchange within the world.
