History of Money Timeline

The development of the banknote began in the 7th century, with local issues of paper currency in China, laying groundwork for later government paper money.

Image source: Banknote

Paper money was introduced in Song dynasty China during the 11th century, becoming the world's first government-issued paper currency.

Image source: Jiaozi (currency)

In the 12th century, the English monarchy introduced an early version of the bill of exchange in the form of a notched piece of wood known as a tally stick; tallies persisted until the early 19th century even after paper money became prevalent.

Image source: Tally stick

By the early 12th century, the banknotes issued in a single year amounted to 26 million strings of cash coins, demonstrating the enormous scale of Song paper money.

Threatened by Alfonso V of Aragon, the Doge of Genoa in 1458 handed the Republic over to the French, but with support from Milan, Genoa revolted and the Republic was restored in 1461.

Image source: Republic of Genoa

The Milanese conquered Genoa in 1464 and held it as a fief of the French crown; between 1463–78 and 1488–99, Genoa was held by the Milanese House of Sforza.

From 1499 to 1528, the Republic of Genoa reached its nadir, being under nearly continual French occupation until Andrea Doria's alliance restored its independence.

Genoese currency became important in the 16th century during the Golden age of Genoese banking, with the Spanish Empire funnelling its wealth from Spanish America through the Bank of Saint George.

Image source: Bank of Saint George

From about 1520 the Genoese controlled the Spanish port of Panama, the first port on the Pacific, holding a concession mainly for the slave trade of the new world until the sacking of the original city in 1671.

Image source: Panama City

The Spanish, with their intramural allies, the 'old nobility' entrenched behind Genoa, captured the city on May 30, 1522, and subjected it to a pillage.

Image source: Sack of Rome (1527)

When admiral Andrea Doria allied with Emperor Charles V to oust the French and restore Genoa's independence, 1528 marked the first loan from Genoese banks to Charles, opening the golden age of Genoese banking.

Image source: Andrea Doria

The state bankruptcy of Philip II in 1557 threw the German banking houses into chaos and ended the reign of the Fuggers as Spanish financiers, opening the way for the Genoese banking consortium.

Image source: Philip II of Spain

In the early 17th century, scriveners in England were the first to keep deposits for the express purpose of relending them, predating goldsmith bankers as financial intermediaries.

Image source: Scrivener

In 1640 King Charles I seized the private gold stored in the mint as a forced loan, undermining trust in royal custody of bullion and pushing merchants toward private goldsmiths.

Image source: Charles I of England

The silver scudo's value increased to 6.5 lire in 1646, 7.4 lire in 1671, and 8.74 lire just before the Austrian occupation of Genoa in 1746.

Image source: Citroën Jumpy

The first European banknotes were issued by Stockholms Banco, predecessor of Sweden's central bank Sveriges Riksbank, in 1661, replacing copper plates; in 1664 the bank ran out of coins to redeem notes and ceased operating.

Image source: Stockholms Banco

The Bank of England was granted sole rights to issue banknotes in England after 1694, ending the practice of private note issue that continued up to that year.

Image source: Bank of England

In 1696, the Bank of Scotland became the first European bank to successfully print its own paper banknotes, entering into circulation the same year.

Image source: Bank of Scotland

In India the earliest paper money was issued by Bank of Hindostan (1770–1832), General Bank of Bengal and Bihar (1773–1775), and Bengal Bank (1784–1791).

Image source: Bank of Hindostan

In England, bills of exchange became an important form of credit and money during the last quarter of the 18th century and the first quarter of the 19th century before banknotes, checks and cash credit lines were widely available.

Image source: Negotiable instrument

Mitchell Innes articulated the credit theory of money in his 1913 article 'What is money?', arguing money is fundamentally a record of debt rather than a commodity.

Image source: Alfred Mitchell-Innes

In the United States, the Federal Reserve Bank was granted rights similar to the Bank of England's after its establishment in 1913, centralizing note issuance.

Image source: Federal Reserve

The Bankamericard, launched in 1958, became the first third-party credit card to acquire widespread use and acceptance in shops all over the United States, soon followed by Mastercard and American Express.

Image source: Visa Inc.

In 1971, United States President Richard Nixon announced that the US dollar would not be directly convertible to gold any more, effectively ending the Bretton Woods system.

Image source: Nixon shock

In the late 20th century, payment cards such as credit cards and debit cards became the dominant mode of consumer payment in the First World; since 1980, US credit card companies have been exempt from state usury laws.

Image source: Payment card

Computer technology developed in the second half of the twentieth century allowed money to be represented digitally; by 1990, all money transferred between the US central bank and commercial banks was in electronic form.

In 2008, Bitcoin was proposed under the pseudonym of Satoshi Nakamoto, introducing decentralized cryptocurrency and launching a new era of digital money.

Image source: Bitcoin

In 2012, by number of transactions, 20 to 58 percent of transactions were electronic depending on country, showing the accelerating shift away from physical cash.

Image source: Cashless society