Halal Business Shari'ah / Regulation Technology

ICD mulls blockchain-based tool for Islamic banks

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Tuesday 04, December 2018 BY Kuda Muzoriwa

The Islamic Corporation for the Development of the Private Sector (ICD) signed an agreement with Tunis-based I-FinTech Solutions to develop several financial technology tools.

Saudi-based ICD has announced plans to introduce a blockchain-based product to help Islamic banks manage their liquidity needs.

The first product would be a commodity-based interbank market that will help conventional and Islamic banks to transact with each other.

The ICD stated that using blockchain for asset and liability management of Islamic banks will help them reduce costs, execution time and address issues related to transparency as well as traceability of transactions.

Islamic finance is increasingly looking to fintech to develop Shari’ah-compliant products to expand into new markets as well as to grow in the industry’s core centres of the Middle East and Southeast Asia, reported Reuters.

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