Jiaozi was the first paper currency issued by the Chinese Song dynasty in the 11th century.
Jiaozi began as privately issued deposit certificates in Sichuan during the Northern Song period. Merchants used them because large quantities of heavy copper cash were difficult to transport. In 1024, the Song government took control of production and issued official jiaozi notes.
The notes represent one of the earliest government-backed paper currencies in world history. Their circulation depended on trust, redemption arrangements and government management of the money supply. Later Song paper currencies included huizi, which became especially important in the Southern Song.
Jiaozi is sometimes loosely called “paper money,” but it was not the only Chinese paper currency. China developed several successive note systems over the following centuries, including those used under the Yuan dynasty.