How money is made (full story)

 

video> How money is made in different countries

Full story> in USA

Money creation involves several processes, depending on whether we’re talking about physical currency or digital money.

• Physical Money (Coins and Banknotes)Design and Engraving: Artists and engravers create detailed designs, including security features like watermarks and holograms.
• Printing and Minting: Special paper or polymer is used for banknotes, while coins are minted from metal. Advanced printing techniques ensure durability and security.
• Quality Control: Each note and coin is inspected to ensure it meets strict standards before being released into circulation.

Central Banks: Central banks, like the Federal Reserve in the U.S., create money by purchasing government securities, which increases the reserves of commercial banks.

Commercial Banks: When commercial banks issue loans, they create money. The loan amount is credited to the borrower’s account, effectively creating new money.

Security Features

To prevent counterfeiting, modern banknotes include features like:

• Watermarks
• Holograms
• Microprinting
• Color-shifting ink