During the First World War this was because the value of the official coinage exceeded its face value, so coins were hoarded or sold for their metal, and then from about 1923 the rate of hyperinflation meant that the central bank could not print and distribute the ever-higher banknote values quickly enough, so this was done locally.
During World War I, this was due to the value of official currency exceeding its face value, leading to hoarding or selling coins for their metal content. From around 1923, hyperinflation rendered the central bank unable to print and distribute banknotes at a pace matching the escalating values, prompting localized distribution.