A system of credit transfer developed in China during the Tang dynasty, it enabled merchants to deposit money in one location and withdraw the equivalent amount in another. This instrument avoided the dangers of transporting large quantities of coinage over long distances. Evidence suggests early forms existed before the Tang, but its widespread adoption and sophisticated application mark its significance during this period.
This innovation facilitated trade and economic activity across the vast Chinese empire and beyond. By eliminating the risk of robbery or loss associated with physical currency, it promoted increased commercial transactions and interconnectedness. The system also centralized control of finances within the imperial government, bolstering its economic power and influence. Its use demonstrates a crucial step in the development of banking and financial systems.