The Islamic development Bank group (IsDB) has entered into a partnership with Tunisian start-up for development of interbank instruments based on blockchain technology.
The Islamic Corporation for private sector development (ICD) is one of the units IsDB — signed an investment agreement with the company I-FinTech Solutions (IFTS). The partners intend to develop and implement a number of blockchain solutions for management of Bank liquidity.
According to a press release, the first product should be a transactional platform in real-time. It should facilitate the transaction of goods and resolution of financial issues between conventional and Islamic banks in accordance with Shariah.
As emphasized in the statement, the use of the blockchain should provide the solution:
- reduction of time of operations;
- the reduction of the cost of the financial and commercial transactions;
- improving transparency and traceability of financial transactions.
“IT will always play an important role in the financial system. We will consistently pursue our strategy of targeting services to help our partners in innovative FINTECH solutions that are compatible with the Sharia,” — said General Director of ICD , Sajini Ayman (Ayman Sejiny).
IsDB with headquarters in Judd (Saudi Arabia) was formed in 1973 by the Organization of Islamic cooperation. The purpose of the international organizations was the support of Islamic banking in the participating countries.
Despite the fact that some members of Islamic clergy, for example, the Grand mufti of Egypt or Diyanet Turkey, stated about the incompatibility of bitcoin with Shariah, the banks of the Muslim countries are actively exploring the technology that lies at the basis of the first cryptocurrencies.
Moreover, in the beginning of the year Ripple launched with the Agency of circulation of money of Saudi Arabia (SAMA), in fact, the Central Bank of the country, a pilot program to use cryptocurrency to carry out Bank payments. In may RippleNet joined the Kuwaiti Bank Kuwait Finance House, to the end of the year will make it the second largest assets financial conglomerate in the Middle East, the national commercial Bank of Saudi Arabia (NCB). Enhanced cooperation prompted Ripple to make a decision about opening of regional office in Dubai.
In another part of the Muslim world, the Malaysian government has identified Islamic Finance as one of three priority areas for implementation of blockchain.