Currency in The Middle Ages

In Europe , initially, coins minted from precious metals continued to be the preferred means of exchange.Never-the-less another form of currency besides coins emerged i.e. the introduction of a paper form of governmental I.O.U. Initially this type of I.O.U. was introduced more successfully through force rather than through persuasion.Subsequently it was universally realized that these paper bills represented transferable third-party payments of funds. They thus became the preferred means for making currency payments ,causing both regional economies and foreign exchange trading to flourish. Such an I.O.U. is now the basis of all of today’s modern currencies.