The central banks and commercial banks are both creating money. The central banks are doing this by purchasing financial instruments and commercial banks are doing this by printing money. Both are doing this to create profits for the shareholders. Which makes it interesting is that there is no government control on the money. Governments around the world love to control almost everything. But not money.
Money is used as a medium of exchange. It works perfectly for this. You give money in exchange for goods or services. This is important for a good reason. Just consider buying some bread.
For centuries people used Gold as a medium of exchange. Paper money was introduced by goldsmiths. They issued the paper and you could collect the Gold in return of the receipt.
Of course, there was a fraud with this. None reputable goldsmith firms issued more paper than Gold they had on reserve. Then we saw a run on the Gold and the firm went bust.
But now things are different. Banks create money and they don’t need Gold. Actual you can’t change your money for any precious metals.
This is important to keep in mind. Banks can still go bankrupt. To avoid you are going to lose all your money the deposits are guaranteed. Not for everyone and there are limitations. Likely it is protected to 100,000.
It is important to look at the banking model as it plays a crucial role in the economy. With the current situation, the banking model is in we have some problems.
The current situation of unlimited money printing is sooner or later going to end in the complete collapse of the system. When this happens we are returning to Gold.