how do banks store digital money ?
Let’s suppose a central bank gives 10 million dollars to a local bank.
How is this money saved?
It just a excel spreadsheet with the amount of the money writted in?
What prevents the local bank to just edit the “spreadsheet” ?
Is there any sort of protocol or agreement between the central bank and local bank,
Like a blockchain or something?
In: Economics
I have worked in banking for 12 years now, and banking is extremely scrutinized by the government and various agencies. For example even a simple payroll deposit to your account is recorded on the Federal Reserve which we can run reports on to see who sent it, to whom, for how much, etc.
Then legally we have to keep records for years (most are 7 years). Then the system automatically creates reports that we use to research on a separate system. And there are multiple servers so if one has an issue, the other takes over.
Part of that requires having redundancy and checks and balances (multiple people/departments check each other) to ensure everything is being done to compliance. No one person has control of your money. For example the ledger that is used for incoming ACHs is reconciled by a completely different area of the bank. Finally, we are audited regularly by internal and external auditors.
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