The emergence and development of the central bank has gone through a long process. The earliest central bank in the world was 1656, the first privately-founded bank in Europe, which was called Swedish Bank. 1668, the government came forward and reorganized it into a national bank, which was responsible to the National Assembly.

Banks are financial institutions that act as credit intermediaries through deposits, loans, remittances and savings. Usually, people regard the central bank as a national bank and a government bank, because it is responsible for issuing money. However, few people know that the earliest central banks in history were all private banks.

The central bank holds the right to coin money, that is, the right to create money, which is a great power. People don't trust to give so much power to the government, but prefer to give it to non-governmental organizations. Of course, with the development of history, the central bank of many countries has become more and more a part of the state machine, but compared with other government agencies, it still enjoys a certain degree of independence.

Sveriges Riksbank、Riksbanken

The earliest central bank in the world appeared in Riksbank, a private bank, 1656, which was chartered and closed down eight years later because of bad debts. 1668 was reorganized according to the authorization of the National Assembly and renamed as Rick Sanders Bank. It is the only bank in the Kingdom of Sweden and issues the only paper money in Sweden, but it cannot be exempted from the obligation to exchange gold coins for paper money.

It agreed to lend money to the government at the expense of obtaining a charter. 1720, the Swedish government failed to pay off a loan, which led to the crisis of the Swedish central bank. There isn't enough gold in the bank safe to exchange the paper money demanded by nervous people.

In this emergency, the Swedish Parliament issued an order stipulating that the paper money of the Swedish Central Bank is legal tender, that is to say, ordering all Swedish nationals to accept this paper money is regarded as paying off the original debt.