Many people believe that cash, the paper printed by the gove...

Many people believe that cash, the paper printed by the government, is coextensive with money, and that bank deposits kept at private sector banks represent a claim on money. Neither of these is true. Instead, bank deposits are themselves money, created by a public/private partnership. They are the dominant form of money. An economist would tell you about the M1 versus M2 money supply here. As a sometimes product person in financial services, I’d just handwave and say “About 90% of what the entire world thinks of money is useful money and 10% is legacy paper certificates that banks will happily exchange for useful money.”

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