In recent years many investors have looked to Asia for their financial investments. The growth in population and the expansion in business and industry of many countries in Asia have made it an attractive destination for investment. While most of the world was hit hard by the recent economic climate, Asian markets have remained relatively strong. Many Asian countries have very little deficits and have larger cash reserves than the US and the UK. Equally, many investors are looking to diversify where they invest their money – rather than simply investing within Europe they are looking further afield towards Asia. As countries such as India and China continue to expand they are challenging the economies of established ‘super powers’ such as the United States and are enticing ever more investors from around the world. What is interesting, however, is though countries in Asia are only now being considered future economic and financial powers, the roots of some of today’s systems of currency and banking originated in Asia.
 
Some of the earliest origins of currency can be found in China. Cowrie shells were used as an early form of currency in China between 3000 to 45000 years ago. This was not anything particularly special as in many countries different items were used in trade – they could be anything from beads to livestock – in Japan rice was used as a form of currency. However, the Chinese cowrie shells can arguably be seen as a forerunner of coinage as representations of the shells began to be used instead of the shells themselves. These could be made of wood, bone and stone but were also made from metals, including lead and copper. Bronzed shells were also found in the Ruins of Yin. 
 
The first proper coinage, however, is often attributed to the Lydians who were from Asia Minor. According to Herodotus the Lydians were the first to introduce the use of gold and silver coins – some people have disputed whether Herodotus meant that the Lydians were the first to introduce coins of gold and silver or precious metal coins in general. Either way, the usage of coins quickly spread soon after from Asia Minor to the rest of the world.
 
As well as coins, the origins of bank-notes can also be found within Asia. The first banknote was used in China in the 7th century Tang Dynasty. Before this the Chinese used circular coins with a hole in the middle that could be strung on a rope – inevitably the very rich soon found it difficult to carry around their strings of money. To remedy this they could leave their coins with someone they trusted, in return they would get a ‘promissory note’ that would indicate how much money they had given the person. Upon showing the note to the person they had left the money to they would be able to have it back. 
 
It was a long process that developed the ‘promissory note’ into printed money. The need for something lighter and more easily transferable, along with a shortage of copper led to this development. By the 10th century the Song Dynasty government began to circulate notes and granted several shops the monopoly of issuing the notes. By the 11th century the government had taken over and begun to produce its own state issued currency using woodblock printing. The printing of this paper money did, however, end in inflation which led banknotes to fall into disuse. They were later ‘reinvented’ in the 17th century.
 
There has even been evidence to suggest that early cheques were used in the Mauryan period in India (321-185 BC). These were called ‘adesha’ and was basically an order on a banker to pay the money specified on the note to a third person – much like a cheque as we see it today. Early banking even had its roots in the Asian continent with records of ‘banks’ of merchants in 2000 BC who would make grain loans to farmers and traders. Evidence has also been found that suggests that money lending was taking place in India and China around the same time as the lenders of Ancient Greece and Rome. With such a rich history of innovations in currency and finances, it is hardly surprising that Asia has become a choice destination for many investors in today’s economic climate.