Islamic Development Bank Group (IsDB) And iFinTech To Develop New Interbank Blockchain Tools

The Islamic Development Bank Group, an important development institution of Saudi Arabia, has recently decided to start a partnership with iFinTech Solutions, a startup company based in Tunisia. Both institutions will get together to develop new interbank blockchain tools that will be used by both of them.

One of the main ideas of the partnership is to make an effort to create a better management system to use to raise the liquidity of institutions. According to the press release sent by the companies, the main reason for the move is that the Islamic financial market and its banks have a relative disadvantage when dealing with other non-Islamic banks in a global scale.

With its institutions having some options restricted by the Shariah, the Islamic law, and some international restrictions, the banks end up losing the competition.

Because of this, the CEO of the Islamic Corporation for the Development of the Private Sector (a part of the Islamic bank), Ayman Sejiny, has affirmed that the country will always pursue innovation and to find new ways of creating innovative Shariah-compliant solutions that will be provided by the fintech industry.

While Saudi Arabia has generally maintained a “risk-averse” stance on using cryptos in the country, it is considerably more hyped about the blockchain technology than with other near countries.

Also, a bank in the country has joined R3’s Corda, a blockchain platform that is made by the international conglomerate, so it seems like most of the financial sectors in the company are interested about the future of the blockchain and how it can help them. There is a wide debate in the industry, though, regarding how the blockchain technology will be used.

One point is certain: the country will get considerably more invested in blockchain in the future unless something happens to change this stance.

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