The truth is, anybody can create money. The problem is to get it accepted. Both banks and government are very good about getting people to accept their IOUs as money.
![](https://pbs.twimg.com/media/Ds-5iZhU0AAfQm7.jpg)
But there is a hierarchical relationship here: only gov money can (ultimately) be used to settle taxes, bank money cannot. The banks stand in between gov and us, making