The first paper money was invented in China in around 600AD. Initially, it was only issued locally. During the reign of the Song Dynasty in 960 it was used as a generally circulating mode of money. The reason for the start of paper money can be attributed to shortage of metals, used for coins. Coins of that era had a hole in the middle and several coins were stung together with a rope to hold them easily. It was hard to carry so many coins because they were heavy. These heavy loads of coins lead to the invention of paper money. The original name for paper money in China was 'flying money' because it was so light it could blow out of your hand.