Banknote

paper moneybanknotespaper currencybank notebank notesnotesbillnotebillscurrency note
A banknote (often known as a bill, paper money, or simply a note) is a type of negotiable promissory note, made by a bank, payable to the bearer on demand.wikipedia
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Legal tender

demonetizeddemonetizationdemonetised
National banknotes are generally legal tender, meaning that medium of payment is allowed by law or recognized by a legal system to be valid for meeting a financial obligation.
Coins and banknotes are usually defined as legal tender in many countries, but personal cheques, credit cards, and similar non-cash methods of payment are usually not.

Coin

coinsspecieexergue
Historically, banks sought to ensure that they could always pay customers in coins when they presented banknotes for payment.
Other coins are used as money in everyday transactions, circulating alongside banknotes.

Economy of the Song dynasty

first developed in ChinaSong DynastyChinese
The first known banknote was first developed in China during the Tang and Song dynasties, starting in the 7th century.
This period also witnessed the development of the world's first banknote, or printed paper money (see Jiaozi, Guanzi, Huizi), which circulated on a massive scale.

Fiat money

fiat currencyfiatfiat currencies
Today, most national currencies have no backing in precious metals or commodities and have value only by fiat.
Government issued banknotes began to be used in 11th century China.

Bank

Bankingbankerbanking system
A banknote (often known as a bill, paper money, or simply a note) is a type of negotiable promissory note, made by a bank, payable to the bearer on demand.
Modern banking practices, including fractional reserve banking and the issue of banknotes, emerged in the 17th and 18th centuries.

Currency

currenciesforeign currencycoinage
Counterfeiting, the forgery of banknotes, is an inherent challenge in issuing currency.
A currency (from, "in circulation", from currens, -entis), in the most specific sense is money in any form when in use or circulation as a medium of exchange, especially circulating banknotes and coins.

Counterfeit money

counterfeitingcounterfeitcounterfeiters
It is countered by anticounterfeiting measures in the printing of banknotes.
Before the introduction of paper money, the most prevalent method of counterfeiting involved mixing base metals with pure gold or silver.

Promissory note

promissory notesnotenotes payable
A banknote (often known as a bill, paper money, or simply a note) is a type of negotiable promissory note, made by a bank, payable to the bearer on demand. Eventually, the Song Dynasty paper money called "jiaozi" originated from these promissory notes. Banknotes were seen by some as an I.O.U. or promissory note: a promise to pay someone in precious metal on presentation (see representative money), but were readily accepted - for convenience and security - in the City of London for example from the late 1600s onwards.
A banknote is frequently referred to as a promissory note, as it is made by a bank and payable to bearer on demand.

Security printing

guillochéssecurity featuresguilloché art
Fighting the counterfeiting of banknotes and cheques has been a principal driver of security printing methods development in recent centuries.
Security printing is the field of the printing industry that deals with the printing of items such as banknotes, cheques, passports, tamper-evident labels, security tapes, product authentication, stock certificates, postage stamps and identity cards.

Song dynasty

SongSouthern Song dynastyNorthern Song dynasty
The first known banknote was first developed in China during the Tang and Song dynasties, starting in the 7th century.
The Song government was the first in world history to issue banknotes or true paper money nationally and the first Chinese government to establish a permanent standing navy.

Cheque

Checkingcheckchecks
Fighting the counterfeiting of banknotes and cheques has been a principal driver of security printing methods development in recent centuries.
Paper money evolved from promissory notes, another form of negotiable instrument similar to cheques in that they were originally a written order to pay the given amount to whoever had it in their possession (the "bearer").

Money

monetaryspeciecash
A note is a promise to redeem later for some other object of value, usually specie.
The money supply of a country consists of currency (banknotes and coins) and, depending on the particular definition used, one or more types of bank money (the balances held in checking accounts, savings accounts, and other types of bank accounts).

Jiaochao

government issued paper moneyChao (currency)paper currency
The founder of the Yuan dynasty, Kublai Khan, issued paper money known as Jiaochao in his reign.
Jiaochao is a Chinese word for banknote first used for the currency of the Jurchen Jin dynasty and later by the Yuan dynasty.

Printing

Printprintedprinter
It is countered by anticounterfeiting measures in the printing of banknotes.
It was used in large-scale printing of paper money

Payment

paymentscompensationpayee
National banknotes are generally legal tender, meaning that medium of payment is allowed by law or recognized by a legal system to be valid for meeting a financial obligation.
Exchanging involves the use of money, comprising banknotes and coins.

Chengdu

Chengdu, ChinaChengtuChengdu, Sichuan
For the printing of paper money alone, the Song court established several government-run factories in the cities of Huizhou, Chengdu, Hangzhou, and Anqi.
The Song conquered the city in 965 and used it for the introduction of the first widely used paper money in the world.

Yuan dynasty

YuanYuan ChinaYuan Empire
The founder of the Yuan dynasty, Kublai Khan, issued paper money known as Jiaochao in his reign. During the Yuan dynasty, banknotes were adopted by the Mongol Empire.
Kublai built schools for Confucian scholars, issued paper money, revived Chinese rituals, and endorsed policies that stimulated agricultural and commercial growth.

Jiaozi (currency)

Jiaozipaper moneyjiaozi banknotes
Eventually, the Song Dynasty paper money called "jiaozi" originated from these promissory notes.
Numismatists regard it as the first paper money in history, a development of the Chinese Song Dynasty (960–1279 CE).

Stockholms Banco

Bank of StockholmKreditivsedlar
The first short-lived attempt at issuing banknotes by a central bank was in 1661 by Stockholms Banco, a predecessor of Sweden's central bank Sveriges Riksbank.
Stockholms Banco (also known as the Bank of Palmstruch or Palmstruch Bank) in Sweden was the first European bank to print banknotes.

Marco Polo

MarcoPoloPolo, Marco
In Europe, the concept of banknotes was first introduced during the 13th century by travelers such as Marco Polo, with European banknotes appearing in 1661 in Sweden.
While Polo describes paper money and the burning of coal, he fails to mention the Great Wall of China, tea, Chinese characters, chopsticks, or footbinding.

Central bank

central bankscentral bankingcentral banking system
Commercial banknotes have primarily been replaced by national banknotes issued by central banks.
The bank was given exclusive possession of the government's balances, and was the only limited-liability corporation allowed to issue banknotes.

Fractional-reserve banking

fractional reserve bankingCriticism of fractional-reserve bankingfractional reserve system
The bankers also began issuing a greater value of notes than the total value of their physical reserves in the form of loans, on the assumption that they would not have to redeem all of their issued banknotes at the same time.
These notes gained acceptance as a medium of exchange for commercial transactions and thus became an early form of circulating paper money.

Representative money

representativecommodity backednegotiated
Banknotes were seen by some as an I.O.U. or promissory note: a promise to pay someone in precious metal on presentation (see representative money), but were readily accepted - for convenience and security - in the City of London for example from the late 1600s onwards.
According to economist William Stanley Jevons (1875), representative money in the form of bank notes arose because metal coins often were "variously clipped or depreciated" during use, but representative money could not have its face value thus divided.

De La Rue

De La Rue plcThomas De La RueThomas de la Rue & Co. Ltd.
This process was invented by Portals, part of the De La Rue group in the UK.
De La Rue plc is a British company headquartered in Basingstoke, England that manufactures paper and security printed products including banknotes, passports and tax stamps.

Giesecke+Devrient

Giesecke & DevrientGiesecke & Devrient GmbHGiesecke & Devrient Australasia
Windows are also used with the Hybrid substrate from Giesecke+Devrient which is composed of an inner layer of paper substrate with thin outer layers of plastic film for high durability.
Giesecke+Devrient (G+D) is a German company headquartered in Munich that provides banknote and securities printing, smart cards, and cash handling systems.