Paper money is now used all over the world.
However, if you trace its history, it was in China that paper money developed early on.
Why was it China, and not other regions?
Exploring the reasons reveals not only the invention of paper, but also the development of commerce and the role of the government.
China had the technology to make paper
First, what is important is that the technology to make paper developed early in China.
Before paper became widespread, people wrote on bamboo or wooden slips, silk, and the like.
However, bamboo and wood are heavy, and silk is expensive.
As paper spread, it became convenient to record information and convey it over long distances.
However, just because paper was invented does not mean that paper money was born immediately.
There was another major reason for the appearance of paper money.
Commerce developed, and coins became inconvenient
In China, cities and commerce developed, and trade with distant regions became active.
This created a need to transport large amounts of money.
However, the money at the time was mainly metal coins.
Especially during the Song Dynasty, heavy iron coins were used in the region that corresponds to present-day Sichuan Province.
For example, what if you had to carry a large amount of iron coins every time you went to a distant town to purchase goods?
It would be difficult just to travel, and there would also be the risk of theft.
The more convenient business became, the more the inconvenience of transporting money stood out.
Merchants spread paper money
That is where paper certificates that could be used in place of metal money came in.
In Sichuan during the Song Dynasty, merchants began issuing paper money called Jiaozi.
Instead of carrying heavy coins directly, people were able to use Jiaozi.
Of course, you cannot accept paper money with peace of mind if you do not know who issued it.
It was important that the issuer was trusted.
The government became involved in the issuance of paper money
As Jiaozi became widespread, the government eventually began to manage its issuance as well.
Issuing paper money under a set system was useful for supporting trade.
On the other hand, paper money also had problems that were different from metal currency.
If too much paper money is issued, the trust in its value may be shaken.
It was not just about creating convenient money; a system to protect trust was also necessary.
Paper money was born from a combination of technology and society
Paper money developed in China not simply because it was the country that invented paper.
It was because they had the technology to make paper, commerce was developing, the inconvenience of metal currency was growing, and a system to solve that was created.
New technology can create major changes when it is linked to the problems of society.
The history of paper money is an easy-to-understand example of that.
So, how was money born and how has it developed in Japan?
