The first paper money was used in China during the Tang dynasty (618-907 AD).
During the Tang dynasty in China, merchants and traders were finding it increasingly difficult to carry large amounts of coins for business transactions. To solve this problem, the Chinese began using paper money, known as "jiaozi," as a substitute for coins. These notes were originally issued by private merchants but eventually became the responsibility of the government. The use of paper money quickly spread throughout China and eventually to other parts of the world. Today, paper currency is the most common form of currency used in many countries around the world.
