Jiaozi: FIRST paper money in history (11th century Chinese money)

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Jaiozi was issued by a private merchant enterprise to replace heavy coins (鐵錢). After 5 years the 16 largest merchant companies founded the Paper Note Bank (Jiaozi hu 交子戶) which became a recognized form of currency by the government

Several merchant companies went bankrupt which allowed the government to nationalize and manage production of paper money (seigniorage power)

Due to inflation, the Emporer Huizong replaced the Jiaozi with a new form of banknote called the Qianyin

Imagine holding Jaiozi today!

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