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Origin and History of the Banknote

The coin was heavy, in the literal sense of the term. It was necessary to replace metal with paper. Probably, the banknote was invented in Europe as a use derived from the receipts that goldsmiths gave for the manufactured coin.

Instead, the first banknote was used in 1170 in China. There copper was very scarce and it was not possible to mint enough metallic currency.

As for Europe, perhaps the first use of banknotes was in the 17th century, when the Swedish bank provisionally launched a series of banknotes in 1661.

Banknotes soon became commonplace on the market, and were accepted as a form of payment. In the 18th century, many private bankers began issuing banknotes that were circulating on credit, all trusting in the solvency of the issuer.

Nevertheless, it was not until 1833 that they had official recognition as legal currency. The first to deserve this honor were those endorsed by the Bank of England.



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