During the early 17th Century, Sweden was rich in copper wealth, producing as much as two-thirds of Europe's copper needs.

In 1644, Sweden started using copper plate money. A 40 pound copper plate was the equivalent of ten dalars worth of silver. The shortcomings of this system are obvious though. The heavy plates were bulky and inconvenient. They were replaced by "certificates" that were exchangeable for an equivalent copper value. The certificates were never considered legal tender in Sweden, but they led to the creation of the first European bank notes.

The first European paper money experiment

Bank notes are considered paper money, but there are other forms of paper money. The first European bank notes were created in 1661 by the Stockholms Banco in Sweden. The bank was founded in 1657 by Johan W. Palmstruch.

This bank note is dated 1666. Palmstruch engaged in dishonest accounting practices and created more bank notes than he could account for. The bank collapsed in 1668.
 

Palmstruch was arrested and imprisoned for "dishonest accounting." The father of European paper money died in prison in 1671.