Short answer: all money is created. The questions are who creates it, how, and with what guardrails.
Isn’t money supposed to be “backed” by something? Modern national currencies (dollars, euros, etc.) are fiat money—their value comes from law, trust, and the issuing government’s monetary framework, not from gold. Central banks manage the monetary base, and most of the spendable money people use is created by commercial banks when they make loans (loans create deposits).
Wait—banks create most of the money? Yes. When a bank approves a loan, it credits your account with a new deposit, expanding broad money. This isn’t “multiplying reserves” in the old textbook sense; the modern view is “loans create deposits,” constrained by capital, profitability, regulation, and central-bank policy.
What about the central bank “printing money”? Central banks can add money to the system—for example, by buying assets. When the Fed buys a bond from a non-bank, new bank deposits are created for the seller; that’s one channel for money creation.
Fiat vs. Cryptocurrency (quick compare)
- Fiat currency: Issued within a political/legal system; supply is influenced by central-bank policy and banking activity. Accountability comes from laws, audits, and democratic oversight (ideally).
 - Cryptocurrency: Issued by protocol rules on a public ledger (blockchain). For example, Bitcoin’s supply schedule is coded (rewards halve roughly every four years until ~21M BTC). Verification comes from open networks and cryptography.
 
TL;DR: Fiat = policy-managed money in a nation. Crypto = rule-managed money in software.
How cryptocurrencies work (30-second sketch)
- A blockchain is a shared ledger; nodes agree on the same history of transactions using cryptography and consensus.
 - Bitcoin adds new blocks via proof-of-work; its code defines issuance and halving.
 - Platforms like Ethereum let developers build apps and organizations on-chain (beyond payments).
 
Want approachable, reputable guides?
- How banks create money (modern view) — Bank of England explainer.
 - What happens when the Fed buys assets — short Fed Note on deposits and QE mechanics.
 - Bitcoin: beginner videos — Khan Academy’s clear series (what it is, supply, blockchain).
 - Bitcoin: how it works — succinct overview.
 - Ethereum learning hub — non-technical and technical guides.
 - Cryptocurrency primer (World Economic Forum) — clear, non-technical overview of cryptocurrencies as currency, widely cited.
 
Where the Society fits
We’re not hand-waving money into existence. We’re designing transparent rails: a contribution-earned token (Essent ℰ) and a needs-indexed instrument (Essential Unit 𝒰) with public proofs, plus governance that any citizen can audit. (Think: protocol-visible creation with human-visible accountability.)
If someone asks “who’s creating it and how do we know it’s fair?”—the answer is: the rules, the math, and the public record.