Brief history of using banknotes in Mongolian and worldwide.
Since the end of 5th century, during the Tan Dynasty existed on the territory of present China , the monasteries used the paper of guarantee under the lent coins. This fact is considered as beginning of using the banknotes. During the Tan Dynasty (8th) the other document "feitsyan" or "flying money" was introduced. This allowed to avoid the carrying the big amount of metal coins but policy of complete replacement of the copper coins was not been pursued.
First banknote "Tsyao tsi" was initially used in Sichuan province of China during Sun Dynasty (960-1279). Some sources mentioned that during Sun dynasty within 65 years between 1011-1076, the banknotes had been issued 22-25 times. Although there are sources mentioned about the use of banknotes in Tan and Sun Dynasties, no material evidences were found till the date.
In 1260, after becoming the Great Khagan, Khubilai named his empire as:"Great Yuan" and issued with golden and silver guarantee "the banknote of Khubilai khan" which became the reliable means of trading.
Banknotes with mark "One string" was equal to one lan of white silver, 10 "string"-to one lan of pure gold. Li 1287, after occupation of whole China , Khubilai khagan changed the title of the year of his rule and introduced new banknotes with 10 different nominals. The banknotes as well were issued in 1309 during the rule of Khaisanchulug and in 1330 during the time of Togontimur. During the existence of Yuan Dynasty for more than 100 years, Mongolians issued about 40 types of banknotes.
