Paper Money or also known as a banknote is a country’s currency in paper form and is normally a legal tender. Paper money is normally printed and regulated by the central bank for that country. Initially paper money was backed by a precious metal or commodity such as gold and silver but now most currencies have a value only by fiat.
The idea of paper money was first seen in China around 118BC where it was made from leather and it was a promise to pay the holder on demand. The first know banknote was developed in the 7th century also in China in the form of merchant receipts.
To prevent counterfeiting of paper money measures are constantly being put in place in the printing process with security features added in order to prevent illegal copies.