Category: History > Credit
In ancient Mesopotamia, particularly in the city of Babylon around 2000 BCE, a sophisticated system of social credit emerged that governed the economic and social interactions of its citizens. This system was based on the "Code of Hammurabi," a set of laws that outlined strict regulations on lending and borrowing, ensuring that transactions were recorded and that both lenders and borrowers adhered to agreed-upon terms. The Code also established penalties for those who defrauded their fellow citizens, thus promoting a sense of accountability and trust within the community.nnThis early form of social credit not only facilitated trade and commerce but also served to stabilize society by encouraging ethical behavior among its members. Those who maintained a good reputation and fulfilled their financial obligations were more likely to gain access to loans and resources, while those who defaulted faced severe repercussions. This practice laid the groundwork for later financial systems by intertwining social and economic stability, reflecting a remarkable understanding of the importance of trust in human interactions long before modern economics took shape.