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
It isn’t just a spreadsheet. The central bank would increase Bank As current account balance by 10 million. Bank A can then transfer it to other people, or banks either to receive a bond, originate a loan or something similar, or to receive physical cash.
Bank A cannot increase their balance at the central bank. They could claim their balance at Bank B is higher than it is, or they can claim their assets are worth more than they are, but this is not really bank specific. And they couldn’t withdraw the money.
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