Banknotes
Pioneered by merchants of United Runberi Princedoms, promissory notes written on paper became a convenient alternative to carrying large amounts of metal coinage. Originally, Runberi banknotes were issued between individuals, so that a specific individual could retrieve coins at a later date. Later, this activity became centralized into the first banks, and these bankers had the idea of making the promissory notes able to be exchanged in general, so that any one person could redeem a banknote for the noted value in coins or precious metals. Later, prominent Runberi banks began standardizing banknotes among eachother, and accepting eachother's notes. The princedoms quickly sought to control this activity, and today the Runberi emirs regulate banking and banknotes in their territories.
The invention of the banknote quickly spread beyond Runberi shores. The banknote made it easier to issue loans, transport funds, and prove solvency. The Khelish realms too have adopted the banknote. While money still tends to be issued in precious metals and coins, the use of banks to store and represent the currency with pieces of paper has become common practice.
Banknotes and their ability to transfer value and enable loans and other financial plays have been a significant factor in securing Runber's dominance in the southern side of the great bay, and the lack of a native banking industry has been a significant hindrance to Exodus in recent decades, as the elves' lack of access and understanding of financial instruments have left them blindsided by the resources the Runberi and their allies can bring to bear in various disputes. For example, in the war against Pordinie, it was the Pordinians' access to loans and thus mercenaries that gave the small Valen kingdom significantly more resources than the Exodites anticipated.
In Cymbar, banking has been taken over by private interests, mainly the old money Cymbarite nobility and a newer crop of merchants arising from the growth of cities. Exodite authorities have been forced to accept the existence and use of paper money and banknotes as a way to transfer and store value, mainly because the humans would do so with or without their blessing.
Access & Availability
Banknotes are typically used by the wealthy in order to ease business transactions. Their utility comes into view when one needs to store a large amount of currency, or needs a loan for some sort of business purpose. While banks in Cymbar will agree to store anyone's currency or precious metals, small scale businesses tend to prefer payment in coins. As a result, the use of banknotes is generally not necessary for the average person.
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