It's the same thing with the US dollar and banks in the US at least. If you put your money into a bank, you don't have money with the bank, you have credit with the bank, not dollars. Now normally the bank lets you redeem your credit for dollars when you withdraw it, so no one has really realized this yet. But if the bank goes bankrupt and the bank does a "Bail in" they just take your money, but legally they don't take your money because in their terms you already gave them your money in exchange for credit with the bank, and if the bank goes under the credit in your account can go away. Source:https://www.investopedia.com/articles/markets-economy/090716/why-bank-bailins-will-be-new-bailouts.asp
It's the same thing with the US dollar and banks in the US at least. If you put your money into a bank, you don't have money with the bank, you have credit with the bank, not dollars. Now normally the bank lets you redeem your credit for dollars when you withdraw it, so no one has really realized this yet. But if the bank goes bankrupt and the bank does a "Bail in" they just take your money, but legally they don't take your money because in their terms you already gave them your money in exchange for credit with the bank, and if the bank goes under the credit in your account can go away.
Source:https://www.investopedia.com/articles/markets-economy/090716/why-bank-bailins-will-be-new-bailouts.asp
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