A more thorough explanation:

A bearer paper is a type of negotiable instrument or document of title that is payable to the person in possession or endorsed in blank. It is called a "bearer" because the person who holds it is considered the owner and can transfer it to another party.

For example, a bearer bond is a type of debt security that is payable to whoever holds the physical certificate. The owner of the bond can transfer it to another person simply by handing over the certificate.

Bearer papers are different from order papers, which are only payable to a specific person or entity named on the document. For example, a check is an order paper because it is only payable to the person or entity named on the check.

Bearer papers have been criticized for their use in money laundering and other illegal activities. As a result, the use of bearer papers has been prohibited in the United States since the passage of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). The Hiring Incentives to Restore Employment Act of 2010 also stripped the value from bearer papers already in circulation before TEFRA by absolving banks from the responsibility of redeeming them.