The “Connected Banknote” is a physical banknote part of a CBDC solution. It acts as a transitional device between traditional and CBDC based payment systems. The “Connected Banknote” can be used as a classic banknote as off-line off-grid means of payment. Moreover, the “Connected Banknote” is a paper wallet; its owner can redeem and transfer the note’s value to a digital wallet. It includes a public and a private key stored in QR codes of which the private key is sealed. When the cover of the private key is removed, the QR code scanned, the banknote is noticeably invalidated. After this procedure, the physical “Connected Banknote” cannot be transferred anymore.

It is decisive that the “Connected Banknote” has the same look and feel like a conventional one. A high level of printed security is needed to create trust and avoid counterfeits.