Banknote

Jiao zi

Yuan dynasty banknote with its printing plate 1287

Marco Polo, Il Milione, Chapter CXXIII and CXXIV

Sweden-Credityf-Zedels

Bank of England Charter sealing 1694

Benjamin Franklin nature printed 55 dollar front 1779

A banknote (often known as a bill or note) is a type of currency and a promissory note issued by a bank or other authorized financial institution, payable to the bearer on demand. Banknotes are a form of fiat money and are used as a medium of exchange in the same way as coins.

History

The concept of banknotes originated in China during the Tang dynasty (618–907 AD) and became more widespread during the Song dynasty (960–1279 AD). The first recorded use of paper money was in the 7th century. The use of banknotes spread to Europe in the 13th century, with the first European banknotes being issued by the Stockholm Banco in 1661.

Design and Security Features

Modern banknotes are designed with various security features to prevent counterfeiting. These features may include:

• Watermarks
• Security threads
• Microprinting
• Holography
• Color-shifting ink
• Ultraviolet features

Denominations

Banknotes are issued in various denominations, which vary from country to country. Common denominations include:

• US dollars: $1, $5, $10, $20, $50, $100
• Euro: €5, €10, €20, €50, €100, €200, €500
• British pounds: £5, £10, £20, £50

Legal Tender

Banknotes are considered legal tender in many countries, meaning they must be accepted as a form of payment within the country of issue. The central bank or other monetary authority typically has the exclusive right to issue banknotes.

Collecting Banknotes

The hobby of collecting banknotes is known as notaphily. Collectors often seek out rare and historical banknotes, and the value of a banknote can be significantly higher than its face value depending on its rarity and condition.

Environmental Impact

The production and disposal of banknotes have environmental implications. Many countries are transitioning to polymer banknotes, which are more durable and have a lower environmental impact compared to traditional paper banknotes.

Related Pages

• Currency
• Coin
• Fiat money
• Central bank
• Counterfeiting
• Legal tender
• Notaphily

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