China celebrates paper currency anniversary

Last Friday, China marked the 1,000th anniversary of the world's first use of a paper currency circulation system, which dates back to the Song Dynasty.

Originally called Jiaozi, paper money first appeared in Sichuan province. Private merchants initially issued it as a note and certificate to replace importable metal money. At that time, business people in Chengdu jointly set up Jiaozi banks across the country.

As long as depositors settled silver into the account in advance and paid fees, they could use Jiaozi in daily life transactions and withdraw silver from banks.

On January 12, 1024, the Song Dynasty government set up an official distribution agency in Sichuan and monopolized Jiaozi's distribution rights.