The Saudi media reported that the Islamic Corporation for the Development of the Private Sector (ICD) is planning to develop sharia-compliant blockchain product. ICD’s plan of rolling financial products powered by blockchain is to enable Islamic banks to manage their liquidity needs.
With the proposed plan for developing blockchain solutions for an Islamic bank, ICD has already incorporated an agreement with I-FinTech Solutions (IFTS), a Tunis-based company. ICD is a branch of Islamic Development Bank Group which claim that the product penned with IFTS is solely designed to attempt liquidity management issues.
The first blockchain product in a row seems like RippleNet solutions by Ripple Lab Inc., however, the report further called it a ’real-time platform’. On top of all, it aims at streamlining the real-time transactions, eradicating any kind of inter-banking issues between banks and making it in-compliance with Sharia laws. By employing the disruptive technology, the product can better perform financial activities whilst keeping everything transparent and traceable.
Nevertheless, ICD claims that this product is built to condense the total transaction times while assuring less cost of financial and commercial transactions at the same time.
Ayman Sejiny, ICD CEO says that;
“IT will always play an important role in the financial system,” continuing, “We will consistently pursue our strategy of service orientation and help our partners with innovative Sharia-compliant fintech solution.”
Also, CEO-Founder of IFTS, Mr. Mohamed Anouar Gadhoum is glad about his firm’s contribution to global adoption of blockchain technology. This tie-up is likely to help ICD provide faster banking solutions to end users or clients.
Sharia law, bitcoin, and blockchain is often a conflicting topic and following the year 2017, there are various firms and fintech plans to launch their own projects based on blockchain making it a sharia law complying projects. Similarly, Al Hilal Bank from UAE became the first ever Islamic bank to debut blockchain solutions.