The local merchants called the certificates “flying cash” because unlike metal money, these paper documents had a tendency to blow away when it was windy. Each certificate had a certain amount of money stated on it and was redeemable for metal cash on demand in the Chinese capital.. Introduction Flying cash, known as “feiqian” in Chinese, was a remarkable financial innovation in ancient China. It is historically important because it represented an early form of paper currency and significantly facilitated long – distance trade. Before flying cash, transporting large amounts of copper coins over long distances was extremely cumbersome, risky, and inefficient. By using.
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Paper money began with the “flying cash” of the Tang (618-907) dynasty around 800. The Tang government considering the inconvenience of shipping cash to distant areas where government purchases were made, paid local merchants with money certifiactes called “flying cash”, because of its tendency to blow away.. Through its ease of handling and facilitation of trade, “flying cash” was a pioneering paper currency system introduced in China in the 7th century, fundamentally changing how money was used. Due to its ease of handling and portability, it offered a more practical solution for transactions than traditional metal coins. The term “flying” emphasizes its groundbreaking concept and the simplicity.