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World History

A World History of Paper Currency

About Paper Currency

According to the International Bank Note Society (IBNS), there are two basic requirements for paper money: fixed denomination and payment to the holder. IBNS also say that payment on sight would be another requirement today although not for many past issues of currency. Certain emergency-issued pieces of papers would not have passed this last requirement, but nonetheless functioned as paper currency.

For any currency to be valid and function in a society, it must hold the trust of the people. The person receiving the note must trust the issuer, or else the note will not be accepted. As IBNS states, "Paper money circulation is, was, and has always been, a circulation of trust."

According to the International Bank Note Society (IBNS), there are two basic requirements for paper money: fixed denomination and payment to the holder. IBNS also say that payment on sight would be another requirement today although not for many past issues of currency. Certain emergency-issued pieces of papers would not have passed this last requirement, but nonetheless functioned as paper currency.

For any currency to be valid and function in a society, it must hold the trust of the people. The person receiving the note must trust the issuer, or else the note will not be accepted. As IBNS states, "Paper money circulation is, was, and has always been, a circulation of trust."