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The Islamic Development Bank studies Shariah-compliant blockchain products

The Islamic Development Bank (IDB) of Saudi Arabia's research equipment would use the blockchain to develop new financial products compliant with Sharia law.

According to Reuters, the Islamic Research and Training Institute has reached an agreement with two start-ups – Ateon and SettleMint, based in Belgium – to carry out technical feasibility studies prior to any in-depth research and development. SettleMint posted the news on the case on its official blog earlier this week.

Shariah-compliant finance generally prohibits the perception of interest on loans, as well as speculative investments. Although it is unclear what types of products might possibly be considered for deployment, the group would have stated that it was interested in the exchange of assets that can settle in on a time. almost instantaneous.

Matthew Van Niekerk, CEO and founder of SettleMint, said in a statement:

"We are very excited to be able to contribute to this project, one of SettleMint's core values ​​has always been to change the world for the better, and using blockchain technology to foster the world's best. the financial inclusion and development of the 57 member countries, corresponds to our ambitions to the letter. "

According to SettleMint's statement, blockchain smart contracts can help automate contract processes for Islamic institutions while "easing the additional administrative and legal complexities as well as the redundancies associated with sharia-compliant financial products."

Image via Shutterstock

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