Szczepanski, Kallie. As the PBOC’s digital money is designed to replace cash, it won’t have a big impact on the broad money supply, and thereby its effect on monetary policy will likely be neutral. Those notes were issued in values of 100, 200, 300, 400 and 500 wen and 1 kuan or 1000 wen. In 105 A.D. Cai Lun, a eunuch during the Eastern Han Dynasty, invented paper from worn fishnet, bark and cloth. While the glut of plastics is the main concern, China’s imports of mixed paper have also dropped by a third. That makes the note authentic. About the 6th century notes replaced coins as burial money. "The Invention of Paper Money." At the end of the Tang period, traders deposited their values with their corporations. With the invention of paper and printing on its account, this country was almost destined to produce the first paper money. (…) The method of issue is very formal, as if the substance were pure gold or silver. On all notes issued between 1380 (13th year of the Emperor Hung Wu’s reign) and 1560 the names of Hung Wu and the Minister of Finance can be read. We do for instance know that paper was introduced to Xinjiang in northwestern China very early through travellers on the Silk Road. The Song established factories to print paper money with woodblocks, using six colors of ink. The factories were located in Chengdu, Hangzhou, Huizhou, and Anqi, and each used different fiber mixes in their paper to discourage counterfeiting. Early notes expired after three years, and could only be used in particular regions of the Song Empire. This centuries-old way of writing is probably a result of writing on strips of bamboo which were tied together. The improvement was such that paper gradually replaced the former bamboomats. ThoughtCo. In the year since, China’s plastics imports have plummeted by 99 percent, leading to a major global shift in where and how materials tossed in the recycling bin are being processed. During the Tang Dynasty (618-907) there was a growing need of metallic currency, but thanks to the familiarity with the idea of credit the Chinese were ready to accept pieces of paper or paper drafts. In the inferior cartouche, a long inscription, which must be read vertically from right to left, gives more information on the note : Printed by imperial authorisation by the Minister of Finance (2 columns to the right); The note of the Great Ming Dynasty circulates together with copper money. Examples of places along the Silk Road were paper was present as early as the 2nd century AD are Loulan, Kotan, Kusha, and Dunhuang. Those hequan were a real success and the idea was exploited by the Authorities. These IOUs allowed the lenders to expand thier usable money pool. While paper money was certainly easier to carry in large amounts, using paper money had its risks: counterfeiting and inflation. When Khan took over China, Paper money was compulsory. China today still are inventing things, something's that have been created before was made by accident like the gunpowder. Szczepanski, Kallie. J.D., University of Washington School of Law, B.A., History, Western Washington University. Although the succeeding Ming Dynasty (1368–1644) also began by printing unbacked paper money, it suspended the program in 1450. For much of the Ming era, silver was the currency of choice, including tons of Mexican and Peruvian ingots brought to China by Spanish traders. Only in the last two, desperate years of Ming rule did the government print paper money, as it attempted to fend off the rebel Li Zicheng and his army. China did not print paper money again until the 1890s when the Qing Dynasty began producing yuan. Early paper-makers in China used hemp fibers, which were soaked in water and pounded with a large wooden mallet. Paper money is an invention of the Song Dynasty in China in the 11th century CE, nearly 20 centuries after the earliest known use of metal coins. Today, both rough-straw paper and paper money are distributed in all corners of the province. The value of Yi guan (or 1 kuan) is represented by the two characters and by ten heaps of coins just beneath them. His subjugation of the Song Dynasty in southern China made him the first Mongol to rule over the entire country and led to a long period of prosperity for the empire. Those notes are considered to be the first to circulate as legal tender. In exchange, they received bearer notes or the so-called hequan. Unfortunately, those notes were issued continuously without redrawing from circulation the old ones. This dynasty lasted from the year 618 to 907 AD, and paper money appeared around year 800. During the Tang Dynasty (618-907) there was a growing need of metallic currency, but thanks to the familiarity with the idea of credit the Chinese were ready to accept pieces of paper or paper drafts.