Interbank Blockchain Solutions To Be Launched By Islamic Financial Institution

By Sumedha Bose

The Islamic states and finance sector in general, have been on their feet and have found out a lot of innovative ways to make their systems more efficient, via the use of blockchain. Just last month we had reported how Islamic States are looking to create a common digital currency to push back against U.S. sanctions.

In recent news, iFinTech Solutions, a Tunis-based fintech firm, has signed an agreement with Islamic Corporation for the Development of Private Sector (ICD), which is the private sector arm of Islamic Development Bank Group (IsDB). This new agreement underlines their joint efforts to develop blockchain solutions for the purpose of  being implemented in Islamic banks worldwide.

(Read how: Going Mum About Blockchain Is The Key to Selling Blockchain Solutions)

A lot of Islamic Banks have been facing long-standing liquidity management issues, which has really given their business a hard time. With this partnership, the parties aim to develop a suite of fintech products which will be developed and implemented to tackle the isues that the banks are facing. The very first product that they plan to launch, is a new transaction platform that will enable transaction of real commodities.

This platform will undertake the difficult but necessary job of combatting the inter-banking issues that banks often have to face while facilitating transactions between conventional financial institutions and Islamic banks. It will also make sure that all the transactions are Shariah-compliant.

The platform will be based on blockchain technology which offers unique solutions and has some great benefits. The time taken for transactions to go throughand the costs associated with it will be greatly reduced when using blockchain technology.

(Read more on: Blockchain Technology)

This liquidity management tool would enable more and more institutions access to solutions that could greatly enhance their systems.

Mr. Ayman Sejiny, CEO of ICD said in the press release:

“IT will always play an important role in the financial system. We will consistently pursue our strategy of service orientation and help our partners with innovative Sharia-compliant FinTech solutions.”

 

Sumedha Bose

Sumedha uses words as her crutch to get by in life. She takes a keen interest in debating, dancing and destroying the patriarchy in her free time. She can be contacted at [email protected].

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