2 Jiao – Empire of China

In 1911, the currency situation of the Qing Empire was a chaotic and fragmented system, emblematic of the dynasty's crumbling authority and economic vulnerability. The core of the system was the silver tael (liang), a unit of weight rather than a coin, which led to countless local variants and exchange rates. Alongside this, silver Mexican dollars and their domestic imitations, known as "dragon dollars," circulated widely for large transactions, while a vast array of copper cash coins (with square holes) served daily retail trade. This bimetallic system, however, was unstable and regionally inconsistent, severely hampering national commerce and state finance.

The dynasty's attempts at reform were too little, too late. In 1910, the Qing government promulgated the "Currency Regulations," aiming to establish a unified, decimal-based currency system centered on a new silver yuan. The plan called for a central bank (the Da Qing Bank) to issue convertible banknotes, phasing out old coins and private notes. While some new coins were minted, the reform was undermined by a critical lack of centralized control. Provincial mints continued to produce debased coinage, foreign banks issued their own notes in treaty ports, and countless local banks and merchants circulated irredeemable private scrip, all eroding trust in any central monetary authority.

This monetary disintegration directly reflected and accelerated the political crisis. The state's inability to control its currency stifled economic modernization, complicated tax collection, and fueled public resentment. When the Wuchang Uprising erupted in October 1911, triggering the fall of the dynasty, the financial system collapsed into further disorder. The new Republic inherited not a unified currency, but a legacy of monetary chaos that would take decades to resolve, with the tael, the yuan, foreign dollars, and countless local notes all circulating in a turbulent competition for legitimacy.