Bank deposits have value only because the Government will accept them

We are forced to value cash and we are forced to value bank deposits.

There is no reason why a bank deposit would be worth less than cash. It's not true that cash is worth any more than bank deposits.

Like Treasuries, bank deposits are a form of money. In a fiat economy, 'money' is whatever the Government directs it to be, and so it is possible that banks can print money, in that sense. If the liabilities of banks are guaranteed then they will be able to print money because (fiat) money is nothing other than Government liabilities. If banks cannot print money then neither can the Government. So, we might very well say that there is no such thing as money, since the concept (apparently) seems to rely on being able to create wealth from nothing, with money being the thing that results from this magic. And since no one is magic, there is no such thing as money.

Banks are able to print tax tokens, due to their being protected by deposit insurance. Something cannot be money unless it has a purpose like a computer, or a television, or food, from whence it derives its value. Fiat money is not a true store of value, and thus it is not money.

No one can print money, nothing of value can be printed out of thin air and so not even the Government is able to do this.

The presence of deposit insurance means banks can increase the money supply because, of course, they can increase their own liabilities. Cash is nothing more than something given value, by instruction, by the State, so if banks have deposit insurance they too are able to print something (of value) equivalent in value to normal cash.

Having deposit insurance means that banks cannot go bust, in the conventional sense. Their liabilities will always have value because (or until it ceases to be that case that) the Government retains the ability to print money out of thin air.