The balance in your bank account ("bank money") represents a claim on central bank money in the form of cash. It's a liability of the bank. In practice, it is not possible to actually get all of it in cash.

Bank money is created when banks give out loans, and it is destroyed when those loans are repayed.

Only certain financial institutions have access to digital central bank money, ie "central bank reserves", through the account they have at the central bank.

Only central bank money has no counterparty risk.