The fake euro note used by the eight-year-old boy in a Swiss village shop was Chinese joss paper “spirit money”, used at funerals.

He was not charged with an offence but his name will reportedly remain on police records, until 2032, the Basler Zeitung (BaZ) newspaper reports.

The toy money had been distributed in early March at the Sissach town carnival in the country’s Basel-Landschaft region.

The notes – which feature blue Chinese characters – were picked up by children.

In April, the boy went to his local village shop with his 10 year-old-brother and a friend, where he asked if he could use the money.

Despite the fact the note was clearly not a Swiss franc, staff called the police. The brothers’ mugshots were taken and their house was searched.

A spokesman for the Basel-Landschaft police said: “We were informed that children with a bundle of counterfeit euro notes tried to buy goods. There was therefore suspicion of counterfeit money being put into circulation.”