Paper Money Introduced in Song Dynasty China

The Northern Song imperial court established the Yizhou Jiaozi Office in Chengdu on January 12, 1024, and began issuing government-backed paper currency called jiaozi. Private merchants in Sichuan had circulated paper notes since the late tenth century, but widespread insolvency prompted the government to assume control of issuance in 1023. Each note was backed by state reserves and printed with multiple ink colors to prevent counterfeiting. The innovation preceded paper currency in other world regions by approximately six centuries.