Kingdom of Dongning and Qing Dynasty Rule (1662–1896)

Under the influence of Dutch and Spanish rule, the main currency in Taiwan during the Kingdom of Tungning Period and Qing Dynasty rule was still silver. Chinese silver taels and foreign silver coins were both in circulation, although the latter tended to be used for trade. Chinese copper coins, such as the Yongli Tongbao issued by the Kingdom of Tungning, were also in circulation in Taiwan and could be exchanged for silver.

During Qing Dynasty rule, paper money was twice issued in Taiwan. The first time was in the 1860s, when, in order to crush a major rebellion (the Tai Chao-chuen Incident), the Tainan Defense Headquarters issued the Taiwan Defense Headquarters Note and raised 40,000 silver yuan from the local gentry. The second time was in 1895, when the Republic of Formosa was resisting the Japanese takeover under the Treaty of Shimonoseki. The Republic’s second president, Liu Yung-fu, issued the Tainan Government Silver Certificates to raise money for defence. The certificates came in three denominations: one, five, and ten dayuan.