Paper money is paper with a sum written on it; it is worth little in itself and passes as money on the credit of whoever issues it. The official jiaozi had iron cash as its reserve and circulated on the credit of the government.
The Yizhou Jiaozi Bureau was set up in 1023 (Tiansheng 1 of the Northern Song) and in the following year issued official jiaozi, the world's earliest government-issued paper money.
In 1287 (Zhiyuan 24) the Yuan issued the Zhiyuan notes, which circulated alongside the Zhongtong notes, and paper money became the main currency across the realm.
In 1375 (Hongwu 8) the Ming issued the Great Ming Treasure Note, which later lost value through over-issue, and silver gradually replaced paper money.
Jiaozi Banknotes is the class in the chapter on Commerce on the paper money of the Northern Song to the Ming: in 1023 (Tiansheng 1) the Yizhou Jiaozi Bureau was set up and the next year issued official jiaozi, the world's earliest government-issued paper money; the Yuan ran the Zhiyuan notes alongside the Zhongtong notes, and the Ming issued the Great Ming Treasure Note.
