A temporary banknote storage device, includes a first sensor, a second sensor, a storage coiling block, a spare tape coiling block, a coiled tape having two ends which are fixed on the storage coiling block and the spare tape coiling block respectively and are capable of coiling, uncoiling and winding between the storage coiling block and the spare tape coiling block, a transfer channel, a first power motor, a second power motor, a third power motor and a microcontroller. The microcontroller controls the first power motor, the second power motor and the third power motor. A method for improving coiling block storage capacity is further provided.
