Who founded the idea of using paper curency and when?

Question

Not necessarily U.S. curency , could paper money have started back in england or elsewhere?

Answer 1

Paper money was first used in 10th-15th century China, though it failed and was banned because of inflation (i.e., they succumbed to the temptation to print too much.

Europe then tried the idea --beginning with the printing of bank notes in Sweden in the mid-17th century. Again, they failed by printing more than the bank could redeem.

Several 18th century attempts throughout

Finally, during the Napolenoic Period the British developed a system with safeguards that worked (first based on silver, then adopteing the gold standard in 1821... a standard that persisted past the mid-20th century).

Paper currency depends for its success on public CONFIDENCE (so backing by a stable government is a big help).

Thus paper money as we know it is a relatively recent invention (19th century!)


http://www.historyworld.net/wrldhis/PlainTextHistories.asp?historyid=ab14#186

Answer 2

The Chinese invented paper money, and possibly even the art of paper making itself. The ancient Egyptians pounded dried reeds and grasses and water into pulp, and screened the mixture into papyrus. But there is evidence that the ancient Chinese were doing this long before the Egyptians. They also invented gunpowder, and an early form of hand grenade.

Answer 3

Well done, bruhaha!