The first recorded use of paper currency in the world is believed to have occurred in China during the Tang Dynasty (618-907 AD). The Chinese used paper money in the form of “jiaozi,” which were paper notes issued by the government that could be exchanged for gold or silver. The jiaozi were used primarily as a means of exchange, but they also functioned as a way to store wealth, as they were easier to carry than heavy coins. The use of paper money eventually spread to other parts of the world, including Europe and the Americas, where it became an integral part of the financial system.