Coins were invented in India

What actually is "money"? Who invented "money"?

Banknotes, coins, electronic money - these are the typical forms of money in the modern world. In the beginning it was out of the question. Goods such as mussels, snails, cattle and grain or rare metals were likely to have served as a monetary function at first. It is no longer possible to determine exactly when the first forms of money came into being.

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Coins in the first millennium BC

The beginnings are likely to be found in the transition from the hunter-gatherer culture to agriculture and cattle breeding around 12,000 BC. At that time, economies based on the division of labor emerged and trade developed. He needed barter goods. General acceptance and scarcity were the prerequisites for a good to be accepted as "money". In principle, nothing has changed about that to this day.

However, "real" money in the form of coins only entered the world history stage late. In the first millennium BC, China, India and ancient Greece began to mint coins independently of one another. One of the earliest European coins is a gold-silver stater (stater = ancient Greek coin designation) from the island of Aegina, which was created around 700 BC. With the world empire of Alexander the Great, coins prevailed in the entire Hellenistic area. In Ptolemaic Egypt there was even an initial inflation, triggered by cheap copper coins. The Romans then naturally took over the coins from the Greeks.

The beginnings are likely to be found in the transition from the hunter-gatherer culture to agriculture and cattle breeding around 12,000 BC. "

The transition to banknotes

Paper money was invented in China in the 11th century, at that time as a temporary substitute for coins. In this role, Spain was the first European country to issue paper money in 1483. "Standalone" banknotes as currency were first issued in 1609 by the Amsterdam exchange bank. Attempts in Sweden and France in the 18th century with banknotes failed because of the overly generous use of the printing press. In the 19th century, however, banknotes became generally accepted.

Up until World War I, the gold standard was used for the most important currencies. After that, the currency structure became unstable. In 1944 the Bretton Woods system, which was valid until 1973, was established. From there, a straight line leads in Europe to the European monetary system and the euro.