Once the Chinese had started making comparatively inexpensive paper from natural fibers, and invented block-printing, paper money came into use in the country.
The first known use of paper money in China is reported from the Tang dynasty, but it was during the Song dynasty that the practice became institutionized and adopted as a govermental policy.
Scarce information remain about this early system of paper money, but we do know that the government officials that issued it wrote and printed names and seals on the money.
Compared to traditional money made from precious metals, paper money was easier to transport, and the use of paper money also freed up metal that could be put to other use.
The Tang dynasty
As mentioned above, the earliest known use of paper money in China is from the Tang dynasty. This dynasty lasted from the year 618 to 907 AD, and paper money