Before the invention of money, human societies used barter, the direct exchange of goods and services.

Commodity money, where a useful item like salt or cattle is used as a medium of exchange, was an early development.

The first true coins, made of a gold and silver alloy called electrum, were invented in the kingdom of Lydia (modern Turkey) in the 7th century BCE.

Coinage offered a standardized, portable, and durable medium of exchange.

Banking has its roots in ancient Mesopotamia and Greece, where temples and money-changers accepted deposits and made loans.

Paper money was first invented in Song Dynasty China in the 11th century CE.

Modern banking practices, such as double-entry bookkeeping and bills of exchange, were developed by Italian merchant bankers during the Renaissance.

The first national banks, like the Bank of England (1694), were established to manage government finances and issue currency.

The gold standard, a system where a currency's value is directly linked to gold, was dominant in the 19th and early 20th centuries.

Most modern economies now use fiat currency, which is not backed by a physical commodity but by government decree.