Once upon a time people were just as reluctant to get used to paper money as today they do not want to give it up.
This is how cash looked a few centuries ago Photo: http://www.thisismoney.co.uk/
Speaking of a cashless society, the first country that comes to mind is this. It is this state that most actively refuses paper money using bank cards and other forms of electronic payments. It is interesting that several centuries ago this state was also in the forefront. financial changes... In 1661, for the first time in Europe, they began to abandon the minting of coins and began to issue banknotes. An old Swedish banknote of 5 dalers, issued on December 6, 1662, has survived to this day. Today she is 356 years old.
PaySpace Magazine editorial staff compiled a list of countries that were the first to start the transition to paper money. Looking ahead, let's say that this list includes countries that are still considered leaders in financial innovation.
China - 11th century
Copper plate for printing paper money, made between 1127 and 1279. On the right is a modern proof print taken from this plate.
For the first time, paper money was issued in China. And this happened much earlier than in Sweden. Not surprisingly, it is this state that is considered the birthplace of paper.
It was inconvenient for Chinese merchants to transport large sums in coins and pay with them, concluding trade deals. Paper money turned out to be lighter and more convenient than metal bars. Then no one would have thought that over time, paper money would also become irrelevant.
The first banknotes were printed in the 11th century during the Song Dynasty. They were printed on reed A4 sheets. And they confirmed that the merchant owned a certain amount of money.
Today, China also dictates fashion in finance. In 2017, 5 organizations from China - Ant Financial, Qudian, Lufax, Zhongan and JD Finance - were in the top ten of the FinTech 100 rating. Mobile payments are rapidly developing in the country - more than 400 million Chinese use Alipay alone on an ongoing basis.
Sweden - 1661
Sweden 1663 (dahler)
The first paper money in Europe appeared in the 17th century in Sweden. The Swedish authorities needed a loan and the head of the Stockholm Bank, instead of issuing a loan in copper coins, decided to print credit papers, which were called paper dalers.
A few years later, it turned out that the state did not return the loan to the bank and the credit institution was forced to print paper money. Which were no longer provided with precious metal. Therefore, the bank went bankrupt, and its founder and ideologist of launching paper money in Sweden, received a life sentence.
Swedish paper money also took a long time to catch on. Documents have been preserved confirming that it was not only unusual for foreign merchants, but also unprofitable to conduct settlements in paper dalers.
However, Sweden was the first in Europe to find a replacement for coins. It will not be surprising if Sweden becomes the first state to find a replacement for electronic money, which is only gaining ground in the payments market.
USA - 1690
Massachusetts 1690 (20 shillings)
Paper money appeared in the United States earlier than the dollar. In 1690, the Massachusetts Colony (today Massachusetts) issued the first notes in denominations of 2 shillings to 10 pounds. They were intended to cover the needs of a military expedition to Canada and were used primarily to pay salaries to soldiers.
Norway - 1695
Norway 1695 (20 riksdaler)
The first banknotes in Norway appeared in 1695. The merchant Johan Molen, one of the richest people kingdom. His ships were increasingly targeted by pirates. And being on the verge of bankruptcy, he turned to the king with a request to issue a paper confirmation of his condition until the remaining ships with goods returned to port.
These banknotes were legal tender in a small part of Norway. But they did not save the merchant from bankruptcy.
England - 1694
England 1697 (pound)
In England, banknotes appeared at the height of the war with France. The government initiated the creation of the Bank of England in order to raise funds to prepare for the next stage of the battles.
The first banknotes were issued in denominations of 5 to 100 pounds and could be exchanged for gold or coins at the request of the owner of the paper. Initially, the denominations of banknotes were applied by hand on bank paper and signed by one of the bank tellers. Today this country is printing.
The 18th century became a real banknote revolution in Europe. Money on paper was issued by France (1701), Denmark (1713), Italy (1746), Austria (1759), Russia (1769) and other countries.
France 1707 (1000 livres)
Denmark 1713 (1/6 of the riksdaler)
Italy 1746 (100 lire)
Austria 1759 (10 guilders)
Russia 1769 (25 rubles)
In the old days, ordinary residents were reluctant to switch to settlements with paper money, preferring coins. Or even barter. It took time to convince people of the reliability of paper money. Likewise today, electronic and mobile wallets cause concern for most users. However, as time has shown, innovations are gradually becoming a habit and becoming the most common means of payment.
The exact date of the appearance of the first paper money is unknown. The primary reason for the emergence of paper means of payment was the need for the long-term preservation and durability of their units. An important criterion was the convenience of using money and their ability to be divided into smaller parts. When metallic money appeared, it already became a prerequisite for the emergence of paper money. The birthplace of paper currency is China, where the first paper was invented. The first coins became, in the truest sense of the word, a heavy burden for their owners. Subsequently, the coins began to be left for storage in special institutions (prototypes of the first banking institutions) against a written receipt - a “written promise”. Documents of this kind have become widespread even for state level... Another reason for the transition to paper money was the acute shortage of metal associated with the development of the mining industry. In general, the need for money has been brewing for a long time, since the economy has not stood still. Thus, the first paper notes appeared. The first money came to Russia due to their rapid and wide distribution in Europe. They were used under the name "banknote". With the advent of new types of money, it became necessary for the governments of advanced states to need big money.
Reasons for the emergence of interest in paper money
The emergence of paper money was accompanied by an increase in the level of development of the economies of the countries of the world. Paper money is not as durable as, for example, metal money. Their main advantage is the convenience and speed of their production, the interchangeability of worn out bills and new ones. Banknotes are very easy to use money compared to coins. One of the significant problems of the functioning of paper units in the state is the possible issue (the issue of banknotes that are not confirmed by the country's gold reserves). Paper means of payment in the financial circulation of the state should be limited in number. At the present stage of the development of the world monetary system, lending (credit resources) is considered the optimal solution to avoid emission. Paper currency has always had an appearance that required constant changes. But the invariable attributes of banknotes are: an individual number, security details against counterfeiting (watermarks, special paper). Paper bills are an original document of an era, a historical document of a particular state and the world as a whole. This is documentary evidence of political, economic, financial events in world history.
The first paper money was primitive
Paper receipts and bills of exchange mandatory were accepted as money. The problem was the exchange of coins for paper money of this kind. The psychological factor also worked: the population expressed a high degree of suspicion and distrust of paper money, rather than the usual and reliable metal currency. Therefore, the metal currency was valued more expensive than the fragile "piece of paper". This has led to competition between these types of means of payment. The historical and economic factor played a role in Russia: a sharp drop in the value of silver led to a more active spread of interest in paper money. The issue of paper money in the United States is associated with the preparation of the country for the Civil War. They were called greenbacks. It was the first type of fiat currency in America. In the Soviet state, with paper money, the issue of "Sovznak" was marked, on which there were no signatures or seals, only face value. During the Great Patriotic War, the stability of the monetary system was noted. During wartime, citizens used cards to obtain food and industrial goods. At the same time, the state kept the price level steadily. During this period, “fakes” were actively disseminated, which negatively affected the monetary system as a whole.
As stated in historical sources, the first paper money was needed by society before paper was invented. The development of the world economy took place at an accelerated pace, and the issue of metallic money did not cover the needs of commodity-money relations. The commodity money used in primitive society became problematic in terms of storage and transportation, and trade gained momentum.
Paper 50 rubles of tsarist Russia 1899 release
It was unprofitable to transport carts with metal coins or "currency" in clothing form, and this made it difficult for economic relations between countries. The emergence of paper money became inevitable.
In the early Middle Ages, European civilization did not yet exist. But there was a more developed Chinese culture, the colorful features of which were captured by Marco Polo in his memoirs. As a person who for 17 years was an adviser and close friend of Kublai Khan, this traveler brought to Europe knowledge about many household items that seemed fictional to Europeans, as well as information about paper money.
The prototype of the banknote in China has long been the bark of teak.
This is how the first paper Chinese banknotes will be ironed.
Before her there was the skin of a white deer, but the issue of such "money" was carried out only for noble persons, and the number of white deer was low. Therefore, pieces of teak bark were more accessible. They were marked with a special seal and served as money.
The story goes that cotton paper soon appeared, which for a long time remained the carrier for the money sign. As you can see, the monetary form changed depending on the availability and convenience of the material. Despite progress in the development of money carriers, what we call money in medieval China was not yet money.
Different variants of Chinese paper money
In the XIII century. banknotes were more debentures fixed on a medium than money in the conventional sense. Banknotes had no independent value. They were written evidence that the buyer had a certain amount of money, and by presenting the document to the issuing bank, he could cash it out.
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Why did you need such paper money? The fact is that the state treasury did not always have enough metals to issue coins. The treasury of a state exhausted by war could not afford to issue such a number of coins that would correspond to the volume of trade. Instead, paper promissory notes appeared, which testified to solvency.
Real paper money
Debt money circulated all over the world until the 16th century. Receipts were still issued and exchanged for coins. But there were not enough coins, and distrust of paper money grew, conflicts arose. As a result, the local authorities of the colonies of North America found a solution to the problems with debt tickets.
It was decided to start issuing real printed paper money, which could equally replace coins, and did not need to be exchanged for them. These were pieces of paper in the form of small rectangles, on which the denomination was indicated. That is, we are talking about the first printed paper money, which could really support the economy.
When did money appear in Europe
The first paper money appeared in Sweden. In Europe, debt notes, which are usually called money, appeared a little later - in the 17th century, except for an unsuccessful attempt to replace metal coins with leather ones.
This is how the Swedish banknote in denomination of 100 dallers from 1666 looks like
This attempt took place in Leiden, the Netherlands. Perhaps the implementation of this idea would have led Europe to paper money, but the city fell under the siege of Spanish troops.
Food supplies ran out, and therefore leather coins began to be used for food, and even book covers made of similar material. Leather and parchment money was practically not used for its intended purpose; it turned into food.
The emergence of paper money in Stockholm was caused by the machinations of local authorities. The main currency in Sweden, as well as in Europe, was a copper coin, the value of which was lower than its face value. Poor quality, as well as the low price and weight of the coins made them unprofitable. money circulation.
How many more coins would be used is unknown. But the Swedish authorities needed to borrow a substantial amount of money from the Stockholm Bank, and instead of copper coins, the bank preferred to issue credit securities in 1661. 
Bank notes were called "banknotes". Still, we managed to collect the required amount, but when the director of the bank wanted to get the loan back, the loan papers were not returned to him. Instead, they offered to issue new papers. The result is strong inflation, depreciation of money and criminal prosecution of the bank's director.
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Despite the negative first experience of introducing paper monetary units, European countries reformed their system of monetary circulation in favor of banknotes.
The first banknotes of tsarist Russia
In Russia monetary reforms did not come soon. More than 100 years have passed since the first banknotes were issued in Europe before there was an attempt to transfer settlement and commodity relations from coins to banknotes in Russia.
The paper money of tsarist Russia appeared under Catherine II. 
Unlike European "banknotes", they were called banknotes (or payment orders). In Russia, coins were made of pure silver and gold, and the supply of these metals in the royal treasury was running out. Therefore, by order of the Empress, special banks, which changed banknotes in denominations of 25, 50, 75 and 100 rubles for an equivalent amount in silver. Thus, the history of the emergence of money in tsarist Russia began in 1769.
Did the people willingly exchange their usual, durable pieces of silver for fragile pink or blue pieces of paper? Yes. It was easier and more pleasant to settle with new money. Endless lines of people wishing to exchange coins for banknotes crowded at the banks.
What did the most valuable and very first paper money in Russia look like? They were rectangles made of paper.
The appearance of the first paper money issued in 1769
They were characterized by the following attributes:
- A watermark that protects banknotes from crafts.
- Real signatures of officials.
- Volumetric images inside two ovals at the top of the bill.
- Bill number.
The cost of such a banknote today is not very high, and ranges from $ 2-10 to $ 175-300, depending on the circulation, preservation and age of the notes. Although the history of the emergence of paper notes in Russia is rather complicated, the first of them are not so primitive.
Modern banknotes, the collectible value of which is much lower, contain practically the same requisites as the royal notes!
Tsar's bill for 25 rubles, 1812
Until now, they have changed only their appearance, denomination and value.
Paper money is the most important discovery of humanity. We owe this discovery to the Chinese, of course. As you know, the Chinese created paper, and later typography. The mode of production of paper money combined both of these discoveries.
History
The first paper money appeared in China as early as 800 AD. Metal coins were very difficult to transport over long distances, so the government thought about creating paper money. It began to pay merchants not in coins, but in special certificates, which were easily exchanged for “hard” money. These certificates depicted people, trees, officials put their signatures and seals. To the west, paper money was most likely brought by travelers returning from China. They appeared in Russia in 1769.
Functions
Paper money is very easy to use. Compared to coins, they are easier to store and convenient when calculating. This money is issued by the state. Paper money is protected by special signs such as watermarks, various color schemes, etc. This is done to protect government money. It is very difficult to counterfeit that kind of money.
Paper money has two functions: a medium of exchange and a means of payment. They cannot be exchanged for gold, so they do not go out of circulation. Sometimes, the state lacking Money, issues more and more paper money. But this can be dangerous if you do not take into account the trade turnover in the country. As a result, paper money gets stuck in circulation and depreciates. Let's give clear reasons for this depreciation: the government has issued an excessive amount of paper money; the wrong ratio of exports and imports of the country.
So, the essence of paper money lies in the fact that they are issued by the state, are not redeemable for gold, and are endowed with a certain course.
Money appeared much later than becoming National economy: at first, the ancient tribes used means of exchange (cattle, fish, decorations were exchanged for bread, meat, fabrics), and different nations used various means of exchange. For example, in Mexico, cocoa beans were used as "money", on the islands of Oceania - pearls and shells, in Alaska and Canada - the skins of valuable animals.
Such commodity-exchange relations were not very convenient and it became necessary to create a universal exchange equivalent. This is how money appeared. At first they were metal (when manufactured in different countries materials such as copper, silver, bronze were used). Paper money appeared only in 1910 and since then has firmly entered our life.
The emergence of money
The first metallic money, minted coins, appeared in the 7th century BC. They quickly spread around the world, as they had a high cost with low weight and volume. In addition, they could be conveniently transported, stored, combined, and crushed.
With the expansion of commodity-production relations, a need arose to increase the value of the exchange equivalent, and silver and gold became the main money. 910 was a turning point in the history of money development - it was at this time that paper money appeared in China. But if earlier their essence was simply the obligation to issue natural money (of the corresponding value), today the paper banknotes themselves are money.
History of Russian money
Before the appearance of money in Russia, cowrie shells, necklaces from precious metal... Around the eighth century, dirhams, silver kopecks, which were called kuns, appeared in Russia. In the 10th century, the kuns were replaced by Western European money, denarii - coins made of thin silver, on the surface of which primitive images of kings flaunted. By the end of the 10th century in Kievan Rus, its own minting of gold and silver coins was launched.
As for the first paper money in Russia, they appeared under Catherine II in 1769: issued paper notes from 25 to 100 rubles could be freely exchanged for copper money. At about the same time, two banks were opened in Moscow and St. Petersburg.
Money development
The very word "banknote" in translation from English means "bank record" - this name was not chosen by chance, this is clearly evidenced by the history of paper money.
So, monetary system(both in Russia and in the world) began to actively improve with the emergence of banks. Banks initially performed exclusively the function of custodians of valuables and money. When depositing money, a person received a certificate, which indicated the amount that was in the bank's custody. This made it possible to pay not with heavy coins, but with light and convenient certificates. Over time, the certificates themselves began to be equated with money.
