Money is created when a trader makes a commitment, by buying goods or services from other traders, to place goods or services in the marketplace of equal value in the future.
In making purchases, traders borrow against their future production if they do not currently have a trading surplus. Money is created as evidence of that debt. Putting goods and services back on the market repays the debt, and extinguishes the money. In other words, money is borrowed into existence, and is extinguished as the loan is repaid. The effective lender, or guarantor of a loan is all the traders who trade with the borrower‑‑in short‑‑the community; the market.
This is how money is created, and extinguished. The stability of a money issue, then, is only tangentially related to any assets that might guarantee it.