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The vast majority of fiat money is created when people take on debt to a bank.

Physical cash is the only fiat money that is debt free.

So to say, electronic cash is more fiat-er?

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The money you have in the form of a deposit in a bank is a bank IOU for physical cash.

If you take on debt to a bank they create new IOUs for physical cash out of thin air.

This is how over 90% of fiat money in circulation is created.

Physical notes and coins are the only fiat money that is not issued via debt.

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