Both usage and form of money has evolved over the ages, before money, people acquired and exchanged goods through bartering. The worlds oldest known, securely dated coin minting site was located in Guanzhuang in Henan Province, China, which began striking spade coins sometime around 640 BCE, likely the first standardized metal coinage. Parts of Europe were still using metal coins as their sole form of currency until the 16th century.
The first paper currency issued by European governments was actually issued by their colonial governments in North America. Because shipments between Europe and the North American colonies took a long time, colonies often ran out of cash. Instead of going back to a barter system, the colonial governments issued IOUs that traded as currency. The first instance was in Canada (then a French colony). In 1685, soldiers were issued playing cards denominated and signed by the governor to use as cash instead of coins from France.14
Around 700 CE, the Chinese moved from coins to paper money. By the time Marco Polothe Venetian merchant, explorer, and writer who traveled through Asia along the Silk Road between 1271 and 1295 CEvisited China in approximately 1271 CE, the emperor of China had a good handle on both the money supply and its various denominations.
The History of Money: Bartering to Banknotes to Bitcoin
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