Refers specifically to money printed on paper or similar material, as opposed to coins. Common in formal, news, financial, and everyday contexts.
New banknotes will be issued next year.
この自動販売機は一万円紙幣が使えない。
This vending machine does not accept 10,000-yen bills.
The bank clerk is counting the banknotes.
I exchanged the banknotes at the airport.
The Bank of Japan issued new banknotes.
Cases of counterfeit banknotes are increasing in this country.
紙幣 refers to paper money, the opposite form of currency to a metal コイン.
electronic money; digital currency