Like what drops them from just adding some extra 00 as everything is digital, especially in third World countries?
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Banks have a vested interest in keeping each other honest because any bank that could successfully convince other banks that they suddenly have a lot more money can cheat the rest out of their real money before they figure that out, which is also the second part in this problem, the figuring it out part.
For that reason they invest a huge amount of resources in making sure that does not happen and for the most part it works. You have to also consider that second part I mentioned. Let’s say you have fake money. What do you do with it and what happens when at some point others realise you’ve paid them in fake non existent money. Other banks will surely realise sooner or later and giving lay people fake money has no particular benefit. Any bank that pulls such a stunt will soon find itself being fined into oblivion and shutting up shop really quick.
The alternative is to just print more real money which is indeed what third world countries do but that does little other than just devaluing their currency.
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