Throughout early Medieval Europe, coins were not as important as they had been during the Roman period. The Germanic people, who had conquered the western part of the Roman Empire, valued coins primarily by their bullion value. Coin production was low, and barter was a common form of exchange.

In about 755, the Frankish King Pepin the Short (751-768) introduced a hammered silver coin called a solidus, which was the most important trade coin of the early Middle Ages. Such silver and gold coins were used to pay for troops or to buy luxury goods.

In about the late 12th century, Europe had again established a trading network and system of coinage. The discovery of new mines in central Europe and the installation of banking houses further accelerated monetary development. Wealthy cities in northern Italy introduced large silver and gold coins, which facilitated exchange with many of their trading partners.