In ancient times, a banknote with a denomination of 100 taels would be equivalent to 100,000 Renminbi (approximately over 350 million VND). Given the high profit potential, why was counterfeiting so rare in ancient times? How did the authorities prevent counterfeiting?
Throughout its long history, China has developed various methods to combat the issue of counterfeit currency, protecting the value and reputation of its national currency system. From the Song to the Qing Dynasty, various dynasties employed strict measures, ranging from legal frameworks to technological innovations, to tackle the problem of counterfeiters.
The intricate patterns on ancient Chinese currency are extremely difficult to counterfeit. (Illustrative Image).
Firstly, we must mention the exquisite patterns on ancient Chinese banknotes that are incredibly difficult to replicate. Ancient paper money often featured designs including flowers, birds, insects, and fish to increase the complexity. Some banknotes even depicted detailed images of dragons, with clarity down to each scale and whisker; anyone attempting to counterfeit would surely “collapse” upon seeing these intricate designs.
However, aside from the difficulty presented by these patterns, there is an even greater challenge: the materials used for printing money.
Ancient Chinese banknotes typically utilized a special type of paper with specific thickness and composition, which was unanimously chosen and issued by officials.
The second factor that would send shivers down the spine of potential counterfeiters is the severe penalties for those who issue or use counterfeit money.
Lastly, one of the nearly impossible features to replicate is the anti-counterfeiting seal. To prevent the circulation of counterfeit banknotes, exceptional artisans were specially invited by the courts to design intricate seals, which were tightly secured in highly restricted spaces. Even a poem with hundreds of characters would certainly discourage anyone attempting to counterfeit the banknote or seal.
Although technical measures can help to mitigate counterfeiting to some extent, when faced with skilled counterfeiters, these measures can sometimes be perfectly replicated. At the end of the Yuan Dynasty and the beginning of the Ming Dynasty, some master counterfeiters were able to produce counterfeit banknotes indistinguishable from real ones, causing confusion in the market. To address this situation, the dynasties developed signature stamp technology. This technology emerged during the Northern Song Dynasty and was primarily used for circulating paper money.
Some banknotes utilized micro-engraving techniques, creating tiny patterns that are difficult to see with the naked eye. This posed a significant barrier for counterfeiters.
In the southwestern region of China during the Northern Song Dynasty, “money shops” emerged to hold large sums for merchants. Depositors could withdraw money using printed “stamps and signatures” as evidence. These signature stamps were special samples or hidden signatures on the banknotes, which were very difficult to replicate and held long-term credibility. By the mid-Qing Dynasty, the “stamped signature” technology had been widely adopted, not only in the issuance of paper money but also in commercial and financial transactions.
The ancient Chinese dynasties’ battle against counterfeiting currency showcased remarkable advancements in both legal and technical aspects. From implementing strict legal measures to tightly controlling printing materials and employing sophisticated technologies like micro-engraving and signature stamps, ancient Chinese dynasties built a robust defense system against the counterfeit currency problem. These measures not only protected the value of money but also maintained economic stability and public trust in the national currency system.