The earliest recorded use of paper currency can be traced back to the Song dynasty (960-1279) in China when it was utilized by a group of wealthy merchants and businessmen in Sichuan, the same place where the art of printing was invented.  

Each banknote issued had printed on it pictures of houses, trees and people in red and black ink. The seals of the issuing banks were then applied and confidential marks were made on each bill in order to prevent counterfeiting.