banknote

Meanings

1. 1
   noun

   a piece of paper or polymer currency issued in a fixed denomination by a bank or other authorized monetary authority

   The cashier held the banknote up to the light to inspect its security strip.

2. 2
   noun

   historical: a bank's negotiable promise to pay a stated sum, often to the bearer in coin, that circulated as money

   The early banknote promised to pay the bearer five pounds on demand.

A compound of bank + note. It first denoted a bank's written promise to pay a specified sum, usually redeemable in coin. Because these notes could pass from person to person, they developed into the standardized paper, and later polymer, currency now called banknotes.

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