I think it has some impact on the economy. Changing bank notes help to stop the circulation of fake money. This can bring inflation down at some point. On a negative note, it will use the fund of the government, and changing notes needs huge amount of money because they have to pay for the design, materials, and production of the new banknotes. This huge amount of money can be allocated to the development of the country's infrastructure or any profit-producing project that can help the economy way more than the idea of replacing the banknote.
If the negative side is using government money, I think infrastructure development can be delayed first. I think it's better to handle currency technology updates first. updated because the threat is that the circulation of counterfeit currency in society will result in inflation that cannot be controlled and will certainly affect the development and economic stability of the country.
If you look at counterfeiting for example, there are some highly professional criminals out there (and even countries like North Korea) doing this sort of forging on a large scale, so if your bank note security features are very weak then newer technological advantages could be very beneficial to preventing fraud. That seems to be the primary benefit you could get from a change, although you might get a sweep up of tax avoiders who have hoarded money in notes trying to cash in before the time is up.
It will only take months for the criminal group to counterfeit the new banknote, and at the end the scenario that is supposed to be fixe by changing banknotes will arise again in just a matter of month or two. So I believe it is just a waste of government funds to change the banknote.
Maybe this can happen, but depending on the level of technology used by the government in making new money, I think using complex technology will be very difficult to imitate, and even if it can be imitated, there will definitely be a difference.
I think the circulation of paper currency now is very little because nowadays people use digital currency more for transactions so it will be easy to control the circulation of paper currency and identify counterfeiting.