The currency is a medium for the exchange of commodities; it was the inevitable outcome of such exchanges. In ancient China the currency came in different forms and was made variously from shells, jade, gold, silver, and paper. The following is a brief introduction to ancient coins in China.

Shell money. Shell money was the oldest form of currency in ancient China. As the shells were small and hard in texture, they came in handy as money. By the Shang and Zhou dynasties the use of shell money reached its zenith, and shell money became a symbol of wealth. Even today the Chinese like to call their most valuable objects “baobei”, which is derived from the name of the Chinese shell money. In ancient China it was not uncommon to use shell money as burial objects.

Hoe-like Money. The hoe-like money was evolved from an ancient Chinese farming toll. In the early days it bore close resemblance to a hoe. Because the hoe is similar to the shovel. This is why the hoe-like money is also known as “shovel money”.

Bronze money in the design of seashells. With the development of commodity exchange, the supply of natural shells as the currency ran out of supply. Imitation shell money made from stone, bone, ceramics and bronze was thus invented to make up for the shortage. But eventually it was bronze shell-shaped money that replaced natural shells. It was nor until Qinshihuang unified the currency in 221 B.C. that shells finally were withdrawn from commodity circulation.

Knife-shaped money. Cast of bronze during the Spring and Autumn and Warring States periods, the money’s knife-like shape was derived from a certain weapon from old days.

Bronze coin with a square hole in the centre. In the late Warring States Period, Bronze coins with a round hole in the centre first appeared in China. The hole made it convenient to string the coins together. When Qinshihuang unified the nation and the currency, he had the round hole in the bronze coins changed into a square, as the round coin and its square hole is regarded as a reflection of the ancient theory that “heaven is round and earth square.” Feudalism lasted for more than 2,000 years, however, despite the changed of times and the currency, the round bronze coins with a square hole in the centre was in use for roughly the same duration. It was after the demise of the Qing Dynasty that they were gradually replaced with paper money.