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where did paper money come from despite its seeming like a modern invention its origins go back to ancient China and despite it now being hard to think of a world without paper money in 1968 Americans could still redeem their US Dollars for silver and the international residents could convert their US dollars into gold up until 1971 what glad to the invention of paper money and the Fiat Standard where money has value just because the government says so this video will examine how paper money developed in ancient times ancient history while the ancient Egyptians valued precious metals they used barley as their former money barley does not meet the current economic definition of good money with regards to portability homogeneity durability divisibility and stability of value the old testament discussed how Abraham bought a burial plot for four hundred shekels of silver indicating that early people soon moved their money from barley to silver the Babylonians also developed a love for silv