The very first banknotes were used by the Chinese in the 7th century, during the Tang Dynasty. Before it was used as a true currency, paper money was used as part of a deposit system in which merchants would leave large amounts of coins with a trusted associate and receive a paper receipt for the transaction. The reason was simple—the copper coins used as currency at the time were heavy. Fast forward about years, and Jiaozi became the first official paper currency in hiw. Sichuan capital of Chengdu. These notes were stamped with official seals to ensure that no one made false copies. Even in the tenth century, counterfeiting was a concern. Today, the word jiaozi is more likely to be associated with delicious Chinese dumplingsbut paper money is still used in many countries.