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In premodern China, the need for credit score and for circulating a medium which was much less of the burden than exchanging thousands of copper coins led to the introduction of paper money, commonly acknowledged right now as banknotes. This economic phenomenon was a sluggish and gradual system that passed off through the late Tang dynasty (618–907) to the Music dynasty (960–1279). It began as a method for merchants to Trade major coinage for receipts of deposit issued as promissory notes from shops of wholesalers, notes which were valid for momentary use in a small regional territory. From the 10th century, the Music dynasty federal government began circulating these notes among the traders in their monopolized salt sector.
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