Laws that make it illegal for you to print your own £5 or £10 notes have been in place since 1844. But when these laws were passed, they overlooked the fact that money can also exist in the form of bank deposits (the numbers in people’s bank accounts). Because of this oversight, banks now have the power to create money through a simple accounting entry. As a result, today almost all money exists as electronic bank deposits, and is created when banks make loans.
Link to article: https://positivemoney.org/how-money-works/how-did-we-end-up-here/