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Paper money and bills

Paper money appeared in China first. Merchants in Sichuan issued paper bills in the 990s. The Song state issued its own paper notes in 1024.

In medieval Europe, Italian merchants perfected the bill of exchange. It was a written order to pay. It moved money across Europe without anyone carrying coins.

Sweden issued Europe's first banknotes in 1661, and the Bank of England was founded in 1694.

Timeline for this chapter

1. 990s–1024 · Paper money and bills
   Private merchants in Sichuan issued paper bills (jiaozi) in the 990s. After issuers failed, the Song state took over, set up an office in 1023 and issued the first state paper notes in 1024. doi.org
2. Late 13th c. (book c. 1298) · Paper money and bills
   Marco Polo described Kublai Khan's mint at Cambaluc (Beijing): notes made from mulberry bark, cut into denominations, signed and sealed by officials with a vermilion imperial seal; forgery was punishable by death. (The book's date, c. 1298, is not verified here; no date is claimed.) afe.easia.columbia.edu
3. Medieval · Paper money and bills
   Italian merchants perfected the foreign bill of exchange to finance trade across Europe; bills also worked around usury prohibitions. cambridge.org
4. 1397 · Paper money and bills
   The Medici Bank is dated to 1397, when its head office moved from Rome to Florence. It dealt in deposits, bills of exchange and loans, ran as a holding of branch partnerships, and lasted until 1494. doi.org
5. 1661 / 1694 · Paper money and bills
   Sweden issued Europe's first banknotes in 1661. The Bank of England was founded in 1694 and issued notes against deposits. bankofengland.co.uk

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