<P> The idea of using a durable lightweight substance as evidence of a promise to pay a bearer on demand originated in China during the Han Dynasty in 118 BC , and was made of leather . Although Carthage was purported to have issued bank notes on parchment or leather , at least before the city 's destruction in 146 BC , making Carthage the oldest known user of lightweight promissory notes. The first known banknote was first developed in China during the Tang and Song dynasties , starting in the 7th century . Its roots were in merchant receipts of deposit during the Tang Dynasty ( 618 -- 907 ) , as merchants and wholesalers desired to avoid the heavy bulk of copper coinage in large commercial transactions . During the Yuan Dynasty , banknotes were adopted by the Mongol Empire . In Europe , the concept of banknotes was first introduced during the 13th century by travelers such as Marco Polo , with European banknotes appearing in 1661 in Sweden . </P>
<P> The idea of using a durable lightweight substance as evidence of a promise to pay a bearer on demand originated in China during the Han Dynasty in 118 BC , and was made of leather . Although Carthage was purported to have issued bank notes on parchment or leather , at least before the city 's destruction in 146 BC , making Carthage the oldest known user of lightweight promissory notes. The first known banknote was first developed in China during the Tang and Song dynasties , starting in the 7th century . Its roots were in merchant receipts of deposit during the Tang Dynasty ( 618 -- 907 ) , as merchants and wholesalers desired to avoid the heavy bulk of copper coinage in large commercial transactions . During the Yuan Dynasty , banknotes were adopted by the Mongol Empire . In Europe , the concept of banknotes was first introduced during the 13th century by travelers such as Marco Polo , with European banknotes appearing in 1661 in Sweden . </P>
when was paper money first used in europe
when was paper money first used in europe
in 1661
in 1661