Loree Alderisio
on April 21, 2025
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In 1150, the Knights Templar revolutionized medieval travel with an ingenious system of letters of credit. Pilgrims could deposit their wealth at one Templar stronghold and withdraw it at another, eliminating the dangerous practice of carrying valuables on long journeys.
The Templars built an impressive network of fortified houses across Europe and the Holy Land. Their sophisticated system served not just religious travelers, but also nobles and even popes, making them Europe's first major banking network.
While originally formed to protect pilgrims on dangerous roads, the Templars' role evolved as they managed vast sums of money. Their strongholds became secure depositories, and their letters of credit became a trusted medieval financial instrument.
This innovative system helped fuel trade and commerce across medieval Europe, laying groundwork for modern banking practices we still use today. Though similar systems existed in other parts of the world, the Templars' network was unprecedented in its scale and influence across medieval Europe.
Sources: Historical records from Templar strongholds, Medieval banking documentation, Contemporary historical accounts
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Michael Blankenship
I heard that it was the Catholic church that invented this. And yet… this page suggests it goes further back. https://accountinginsights.org/the-historical-evolution-of-checks-in-banking/
April 21, 2025
Loree Alderisio
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