A study released by the International Monetary Fund (IMF) shows that central bank digital money may influence monetary policy by increasing the speed of money circulation, disintermediation, volatility of bank reserves, currency substitution and changing capital flows, even if it is not designed to do so. In the Islamic banking system, the unexpected impact of CBDC can be particularly severe.

The Islamic financial system accounts for less than 2 per cent of the global financial system, but it exists in 34 countries and is systemically important in 15 jurisdictions. Only two countries, Iran and Sudan, have a full Islamic banking system. According to the white paper, 10 countries with Islamic finance, including Iran, are currently considering the establishment of CBDC.

The design of the CBDC is complicated because Islamic law forbids usury and speculation. This has had a strong impact on liquidity management:

"traditional liquidity management mechanisms-interbank markets, secondary market financial instruments, central bank discount windows and lender of last resort (LOLR)-are not allowed by Islamic banks."

Banning speculation also "means that CBDC cannot be used to trade foreign exchange derivatives." In the meantime:

"Islamic mobility management tool […] The development of these banks continues to be slow due to the lack of supportive regulations, the complexity of compliance with sharia law, limited standardization, the small number of Islamic banks and the underdeveloped financial sector in many countries.

In many countries, Islamic banks lack infrastructure, causing them to hold too much cash. The study found that the risk of bank disintermediation increased because deposits from Islamic financial banks and halal (Islamic law-compliant) CBDC did not pay interest.

The response of the Islamic world to cryptocurrencies has not been consistent. Password adoption is growing rapidly in some countries in the Middle East and North Africa, while others are stagnant. Even among Islamic scholars, the views are different. For example, the Malaysian Securities Commission Sharia Law Advisory Committee believes that password trading is acceptable, while the Indonesian National Urma Commission has come to the opposite conclusion. Iran's commercial interests also support the use of passwords in foreign trade.