Where New Money Comes From

Many people assume that when banks make loans, they are simply lending out money that other customers have deposited. In practice, that isn’t always how the system works.

In many modern banking systems, lending can create new money digitally, expanding the money supply beyond existing deposits. This process, sometimes described as money being created “out of nothing,” allows banks to extend credit far beyond the cash originally deposited.

Over time, this form of money creation can influence asset prices, incentives, and purchasing power across the economy. Those closest to the creation of new money often experience its effects first, while others feel the impact later through rising prices and changing financial conditions.

Understanding these mechanics helps explain why some people question credit-based monetary systems.

Glint provides access to real, allocated physical gold held securely in a vault, offering an alternative way to save and spend that doesn’t rely on the expansion of bank credit. Through Glint, gold can be used almost anywhere Mastercard® is accepted, bringing a tangible asset into everyday use.

Clarity around how money works is a key step toward making informed financial choices.

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