The Evolution of Currency: From Barter to Modern Banknotes

Tracing the Origins of Paper Money

The history of paper money began in 7th-century China during the Tang Dynasty, where merchants used silk and mulberry bark notes to simplify trade. By the Song Dynasty (960–1279 CE), these notes evolved into government-issued “jiaozi”—the world’s first state-backed paper currency.

Key Milestones:

• 13th Century: Marco Polo documented China’s paper money system in The Travels of Marco Polo.
• 17th Century: Europe adopted linen-cotton paper for banknotes, pioneered by Sweden’s Stockholms Banco.
• 19th Century: The U.S. introduced “greenbacks” printed on cotton-rag paper during the Civil War.

Why Cotton Paper Revolutionized Currency:

• Durability: Outlasted silk and wood-pulp alternatives.
• Security: Enabled early anti-counterfeiting features like watermarks.
• Global Adoption: Became the standard for modern banknotes by the 20th century.

Internal Links (Related):

• How cotton paper shaped anti-counterfeiting technologies.

External Link (Authority Source):

• The British Museum: History of Chinese Paper Money