Arthur Smith, who composed it during the 50s, wrote it for two banjos. It was originally called “Feudin’ Banjos” and he recorded it playing a four-string banjo along with the late, great bluegrass musician Don Reno (who played a five-string banjo).
Just out of interest, Smith was not credited as the composer of “Duelling Banjos” in Deliverance. He successfully sued the filmmakers over this.