This seems to be the subtle

And it is the state — today mainly via publically owned central banks — that is the original source of this money. The central bank also grants other institutions the privilege to create money and settle payments in sterling via the granting of banking licenses, but even these entities must ultimately settle their payments with each other using state currency issued by the central bank — money has a hierarchy. The state asserts its monopoly power over the right to issue sterling by deeming it ‘legal tender’ and putting you in prison if you attempt to forge the currency.