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A banknote often known as a bill paper money or simply a note is a kind of negotiable instrument a promissory note made by a bank payable to the bearer on demand used as money and in many jurisdictions is legal tender banknote A piece of paper currency A demand note issued by private banks presumably backed up by gold or silver coin Banknote A piece of paper issued by a bank public or private representing its promise to pay a specific sum to the bearer on demand and acceptable as money banknote currency issued by a government or central bank and consisting of printed paper Moneysubstitutes issued by banks in the form of noninterestbearing promissory notes payable to bearer on demand which circulate freely as a substitute for the sum of money stated on their face Banknotes differ from fiat money qv