Human Saga

Song China issues jiaozi, the world's first government paper money

1023 CE·Economy & trade·China (Sichuan)·
1023 CEDate
Economy & tradeCategory
24Empires active
Date
1023 CE
Category
Economy & trade
Region
China (Sichuan)
Era
Post-Classical / Medieval
Significance

In 1023 the Northern Song government established a state Jiaozi Office at Yizhou in Sichuan and took over the issue of jiaozi, creating the world's first official, government-backed paper currency.

The notes had grown out of private promissory bills used by Sichuan merchants from the late tenth century to avoid hauling the region's heavy iron coinage, of which a string of a thousand could weigh many kilograms. By standardising the notes, backing them with reserves and limiting their issue, the state turned a private convenience into a national instrument of exchange. Paper money lubricated the booming commerce of the Song 'economic revolution', with its expanding cities, long-distance trade, credit institutions and proto-industrial output, and it anticipated by centuries the fiat currencies of the modern world. Later over-issue would bring inflation and the eventual discrediting of paper money in China, but the Song experiment marked a profound innovation in the history of money and finance.

See the world map in 1023 CE →More economy & tradeThe Post-Classical / Medieval era

One piece of history in your inbox, weekly

New empires, events and features as they land — one good email a week. No spam, unsubscribe anytime.

Empires active in 1023 CE

Related economy & trade events

Further reading

The wider story

The Silk Roads: A New History of the World

Peter Frankopan

Best-selling world history told through the trade routes that moved goods, faiths and ideas.

Get it on Amazon →

As an Amazon Associate, Human Saga earns from qualifying purchases.