This chapter focuses on paper currency in its physical characteristics, not on the broader question of fiat currency vs. commodity based monies. Paper currency is the primary and most known form of fiat money, so that the two are closely associated in people's imagination. The substitution between paper currency and e-money therefore does not change the overall demand for outside money, but it does reduce the role of paper currency. The only country where paper currency appears to be on a secular decline, as a share of Gross Domestic Product (GDP), is China, probably due to the strong economic growth rather than to a contraction of cash as such. The effect on economic activity was visible, but probably not large. The official data point to steady real GDP growth at the end of 2016, and therefore suggest that the impact of the great demonetisation may have been small from a macroeconomic perspective.