Flying cash
Encyclopedia
Flying cash was a paper currency of Tang Dynasty
China
and can be considered the first banknote
.
s over large distances, the Tang government decided to pay merchants with which they did business in paper money. Due to their tendency to fly away, the notes were dubbed "flying cash."
and, therefore, their circulation was limited. However, since they could be exchanged for hard currency at the capital, they were traded amongst merchants as if they were currency. It wasn't until the Song Dynasty
and subsequent Jin occupation that paper money was officially established as a legal tender. The use of paper money spread westward through Mongol
traders and, by 1661, European countries were printing paper currency.
Tang Dynasty
The Tang Dynasty was an imperial dynasty of China preceded by the Sui Dynasty and followed by the Five Dynasties and Ten Kingdoms Period. It was founded by the Li family, who seized power during the decline and collapse of the Sui Empire...
China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
and can be considered the first banknote
Banknote
A banknote is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions is legal tender. In addition to coins, banknotes make up the cash or bearer forms of all modern fiat money...
.
Origins
Due to inconveniences in transferring large numbers of the standard copper cash coinCash (Chinese coin)
A cash was a type of coin of China and East Asia from the 2nd century BC until the AD 20th century. The photograph to the right shows replicas of various ancient to 19th century cast coins in various metals found in China and Japan.-Terminology:...
s over large distances, the Tang government decided to pay merchants with which they did business in paper money. Due to their tendency to fly away, the notes were dubbed "flying cash."
Use
Flying cash was never originally meant to be used as legal tenderLegal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....
and, therefore, their circulation was limited. However, since they could be exchanged for hard currency at the capital, they were traded amongst merchants as if they were currency. It wasn't until the Song Dynasty
Song Dynasty
The Song Dynasty was a ruling dynasty in China between 960 and 1279; it succeeded the Five Dynasties and Ten Kingdoms Period, and was followed by the Yuan Dynasty. It was the first government in world history to issue banknotes or paper money, and the first Chinese government to establish a...
and subsequent Jin occupation that paper money was officially established as a legal tender. The use of paper money spread westward through Mongol
Mongols
Mongols ) are a Central-East Asian ethnic group that lives mainly in the countries of Mongolia, China, and Russia. In China, ethnic Mongols can be found mainly in the central north region of China such as Inner Mongolia...
traders and, by 1661, European countries were printing paper currency.
See also
- BanknoteBanknoteA banknote is a kind of negotiable instrument, a promissory note made by a bank payable to the bearer on demand, used as money, and in many jurisdictions is legal tender. In addition to coins, banknotes make up the cash or bearer forms of all modern fiat money...
- Fiat currency
- Economy of the People's Republic of ChinaEconomy of the People's Republic of ChinaThe People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...
- Economic history of China (Pre-1911)
- Economic history of Modern ChinaEconomic history of modern ChinaThe economic history of modern China began with the fall of the Qing Dynasty in 1911. Following the Qing, China underwent a period of instability and disrupted economic activity. Under the Nanjing decade , China advanced several industries, in particular those related to the military, in an effort...