How early can we get Paper-money?

Yorel · Mar 12, 2013

From what I could gather, Paper-money only came into being in the XIXth Century althought there were a few tries in the XVIIIth Century. Is it possible for paper-money to be used earlier than it was OTL? If so, what would it require?

Meerkat92 · Mar 12, 2013

Probably as early as we can have paper, in a practical sense.

Larus Marinus · Mar 12, 2013

The concept of banknotes was introduced in Europe in the 13th century by travellers such as Marco Polo. Banknotes were used in China even earlier than that.

...At least, that's what a quick read of a Wikipedia article told me.

carlton_bach · Mar 12, 2013

The answer to that questiuon really depends on your definition of money. I could easily see a near-universal medium of exchange inside the Han-dynasty Empire being government promissory notes, effectively paper money. To a degree even earlier, a kiond of credit money used almost as early as written accounting would be feasible. But as money, in all denominations and legal tender, that would need to wait for a theory of money and a state with the power and desire tro enforce it. I don't know enough about the Tang dynasty, but certainly Song. Of course they had it IOTL, so boo.

Vingilótë · Mar 12, 2013

...

Paper money was invented in the 11th century.

Yorel · Mar 12, 2013

Zmflavius said:
Paper money was invented in the 11th century.

Well, excuse me for my ignorance: I suck at economical history. But it does seem to me that paper money didn't became of common use until the XIXth Century.

wietze · Mar 12, 2013

carlton_bach said:
The answer to that questiuon really depends on your definition of money. I could easily see a near-universal medium of exchange inside the Han-dynasty Empire being government promissory notes, effectively paper money. To a degree even earlier, a kiond of credit money used almost as early as written accounting would be feasible. But as money, in all denominations and legal tender, that would need to wait for a theory of money and a state with the power and desire tro enforce it. I don't know enough about the Tang dynasty, but certainly Song. Of course they had it IOTL, so boo.

indeed if you loosen the definition, it could even be cuneiform clay tablets that work as such. as soon has you have the concept of money and promissory notes it is technically possible.

RousseauX · Mar 12, 2013

Yorel said:
Well, excuse me for my ignorance: I suck at economical history. But it does seem to me that paper money didn't became of common use until the XIXth Century.

In Europe maybe, but IIRC the Song dynasty in China had widespread usage of paper currency at the time.

Johnrankins · Mar 12, 2013

Yorel said:
Well, excuse me for my ignorance: I suck at economical history. But it does seem to me that paper money didn't became of common use until the XIXth Century.

Much earlier than that, it was pretty common as early as the 15th or 16th century.The big merchants used paper money among themselves quite often by that time.