Well, not exactly paper… Yet at least from IX to roughly XV century AD Russians used little furry animals’ worn out skins as money. Worn out to the point they did not have any real value by their own. They did not have any golden backing and such, but were secured by the duke or king lead seal. One skin has been called “veveritza”. Usually 18 of them were put on a cord with a seal. This was called “kuna” and equal to one Arabic dirham. Sounds familiar, does it?
Furry money are first mentioned in the Tale of Bygone Years and later numerous Arab and European travelers mentioned them, too.