Abstract Electronic money is one of the innovations that resulted from technological progress, and we find that it is multiple images and forms, which raises discussion about a number of economic and monetary issues that should be taken care of in light of the modern variables under which monetary policy is used and affect its effectiveness, and the study aims to clarify the impact of electronic money. On the functions of the central bank and its impact also on the objectives and tools of monetary policy, with an explanation of the advantages of the electronic monetary system and the extent of its impact on the effectiveness of monetary policy in light of the formal and objective controls regulating the issuance of electronic money.