Just as Lydia, Greece, and other kingdoms were busy producing their various forms of currencies, China has a different idea. They used a form of coin, and this is based on the miniaturized metallic representation, and it involves the use of such tools like agricultural implements, knives, and agricultural tools such as axes. With time China refined its currency and started to use a rounded coin that has a Chinese inscription in them. The Chinese were the people to invent what is today known as paper currency. The first of such currency was manufactured around the year, 100, and the first paper currency uses such materials as bamboo, hemp, linen, as well as mulberry bark and so on. Just as they were making the currency paper, the Chinese were also implementing credit notes on paper as well as deerskins as a long-distance trade guarantee. It was believed that the first of such a paper bill made its appearance during the period 7th BC, and it was during the reign of the Tang Dynasty.
This finally paved the way for the emergency of paper currency, and this was attributed to lighter weights. Furthermore, this can substitute thousands of coins. It paves the way for higher and larger trade transactions to be carried across a long distance. The government at that time facilitated foreign trade because they made it easier for foreigners to exchange their metallic coins in the treasury, and this means that they would get paper currency in exchange.
The development of banknote
As the Chinese were developing their paper currencies, the Europeans were equally doing the same. However, the paper currency did not grow faster in Europe as it did in order parts of Asia. It was introduced to Europe by foreign travelers such as William Rubruck and Marco Polo. At that time, the materials to use for paper currency were not widely available in Europe.
It was actually in the 13th century that paper money finds its way to Europe . It was also in Europe in medieval Italy and Flanders that promissory notes were first introduced. This arose because of the problems of transporting large sums of money from distant places. These were written personally when it started, but the system improved later when it turned to written order to pay somebody that amount of money in possession. It is assumed that the promissory notes paved the way for the emergence of the regular banknotes.