Smart Banknotes Defined: Features and Criteria

4 Pages Posted: 23 Nov 2020

See all articles by Franklin Noll

Franklin Noll

Noll Historical Consulting, LLC

Date Written: October 7, 2020


A smart banknote is a physical banknote on a paper or polymer substrate that can communicate with an electronic network. A smart banknote is denominated and has the physical properties of a traditional banknote in size, feel, appearance, and etc. It is not a rigid, plastic card such as may be used in present credit or debit transactions. The purpose of a smart banknote is to act as a hybrid that can function either as a definitive or an electronic instrument, depending upon the immediate need. Such functionality will allow a smart banknote to act as a transitional device between traditional payment systems and electronic and crypto-based payment systems.

This paper presents an overview of smart banknotes, including their history to date, their differentiation from paper crypto wallets, and their need to mimic traditional banknotes.

Keywords: smart banknotes, banknotes, cryptocurrency, bitcoin, wallets, central bank digital currency

JEL Classification: E40, E50

Suggested Citation

Noll, Franklin, Smart Banknotes Defined: Features and Criteria (October 7, 2020). Available at SSRN: or

Franklin Noll (Contact Author)

Noll Historical Consulting, LLC ( email )

220 Lastner Lane
Greenbelt, MD 20770-1617
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics