How was Money Created? The History of Money

Money is a unit of account that is used to price and accept goods. It aids in the communication of product prices and gives a means for individuals to store their money. Guanzhuang in Henan Province, China, was the world's earliest known coin minting location. Chinese archaeologists reported in early August 2021 that they had unearthed the world's earliest known, securely dated currency minting facility.

This factory, located in Guanzhuang, Henan Province, China, began striking spade coins, one of the first regular types of metal money, circa 640 BCE. King Alyattes of Lydia issued what is thought to be the first official money around 600 BCE. The Lydian stater was constructed of electrum, a silver-gold alloy. The Chinese Yuan dynasty switched from coins to paper money in 1260 CE.

Soldiers in North America were provided playing cards denominated and signed by the governor in 1685 to use as currency instead of French coinage. Because supplies between Europe and the North American colonies were slow, colonies frequently ran short of money. IOUs were issued by colonial administrations and traded as money.

Mobile payments and virtual currency are two new types of currency that have emerged in the twenty-first century. Mobile payments are payments made for goods or services using a portable electronic device. Unlike traditional currencies, virtual currencies have no real coins and are governed by decentralized authority.

In short, the Chinese switched from coins to paper money around 700 CE. Between 1271 and 1295 CE, Marco Polo travelled through Asia along the Silk Road. In some areas, such as business-to-business and consumer services, bartering is still practised on the fringes