On 3 February 1690, paper money was first printed in the British colonies. Massachusetts was the place where money was printed and before actual paper was used, money was printed on pine tree shillings. Coins were also used.

Although the British wanted colonial soldiers to fight against the French, they did not have the money to pay them to fight. So they decided to pay the soldiers with a piece of paper which would serve as a sort of certificate which could be cashed in for coins later on. At this time, coins were the only form of real currency and paper money was not seen as real money.

This idea of a paper promise began to trend and started coming up all over the world. As this was happening, people found it very easy to make their own money as you could say. With simply a pen, people began to create counterfeit money. This resulted in the making of more complex bills over time.
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The bills became so popular because it was the idea that the paper had a gold value and it could be exchanged for gold. But in reality there was not gold to back up all of the paper money, which is why it was printed in the first place. This system of paper money worked well for the government and until this day, the idea of paper money is the most widely accepted currency in the world.

–Justin O’Brien