IMF examines CBDC design in context of Islamic banking, finds some risks magnified
A central bank digital currency’s liquidity and foreign exchange would work differently Islamic law from what might be expected.
Original report: Monetary Policy Implications Central Bank Digital Currencies: Perspectives on Jurisdictions with Conventional and Islamic Banking Systems
CBDC design is complicated by prohibitions in Islamic law on usury and speculation. This strongly impacts liquidity management:
“Conventional mechanisms of liquidity management — interbank market, secondary market financial instruments, central bank discount window and Lender of Last Resort (LOLR) — that are based on interest are not permissible for Islamic banks.”
This could potentially be interesting; a subsystem that isn't really aligned with the debt-fuelled-monetarist-economy.
This is interesting as is somewhat similar to banks such as Custodia - refused a Fed licence because they are NOT banksters. The debt/usury game is the banksters' prime tool of screwing society. However, islamic banking isn't going away any time soon, so the IMF has to accommodate that POV. Such banks are not averse to lending to productive entities - just not purely for usury.
Still on CBDCs, here's one way to force a population to be compliant: Nigeria CBDC adoption spikes as fiat currency shortage grip the nation
strangle the supply of cash and force digital use.
In some countries this will be easy - human behaviour is so easy to manipulate - many already use phone payment apps - their behaviour will be the same with a CBDC. Many still wear masks - stupid monkeys abound.