The research result of Islamic Development Bank (IDB) of Saudi Arabia allegedly uses blockchain technology to develop a new ѕhаrіа-соmрlаіnt fіnаnсіаl product.
Based on the report of Reuters, the Institute for Islamic research and training has reached an agreement with two startups (SettleMint and Ateon), the latest in Belgium – to conduct technical fеаѕіbіlіtу studies before any in-depth research and development. Earlier this week, SettleMint released the news concerning the agreement on its official website.
Collection of any interest on speculative investment and loan is highly prohibited by the Sharia-compliant finance. While it is not clear which specific product types should ultimately consider deploying, the group allegedly stated that it has interest in the exchange of assets that could be settled quickly.
The CEO and founder of SettleMint, Mathew Van Niekerk, said in his word that they are thrilled to contribute to the project and that one of their core values has always been to influence the world positively and to use blockchain technology to further financial inclusion and development of the 57 member countries, fits their ambition to the letter.
Blockchain technology can assist automate contractual procedures for Islamic institutions while reducing other administrative and legal difficulties together with redundancies related to sharia-compliant financial products. – Said SettleMint.