Council of Islamic Banks Call for Safe Financial System

Digital currencies are witnessing a wave of global developments, in the field of financial technology, and may create a quantum leap, in the future of the financial sector, in general, and Islamic finance, in particular, the Secretary-General of the General Council of Islamic Banks, Dr. Abdelilah Balatiq indicated.

Establishing of a safe financial and environmental system that supports ways of employing these currencies, in the global financial system, henceforth, is a must, he explained, pointing to the cooperation, in place, between the council and the Islamic Corporation for the Development of the Private Sector, to spread the culture of digital currencies and their impact on the growth and development of Islamic finance.

“Digital currencies – a double-edged sword: challenges and opportunities in the Islamic financial sector”, he remarked, adding, during the second virtual symposium of the council, that a working group for innovation and technology was formed from members of the council and stakeholders to support these developments and start preparing new initiatives, that seek to integrate innovation into the growth of Islamic finance, with the aim of promoting the adoption of financial technology, within the Islamic financial industry, as well as encouraging innovation and product development in line with the purposes of Sharia compatibility and global developments.

For his part, Chief Executive Officer of the Islamic Corporation for the Development of the Private Sector Ayman Sijini highlighted the opportunities that sustainable development and financial inclusion programs can enjoy from the multiple applications of blockchain technology, including cryptocurrencies, adding that compliance with Sharia will constitute a landmark in the Islamic banking industry, through adaptation to modern innovations and increasing number of financial institutions that provided a number of financial services, based on blockchain technologies.

Islamic Corporation for the Development of the Private Sector has adopted a platform for financial technologies with the aim of providing financial services based on “blockchain” technology, with the aim of reaching individuals and small enterprises with limited benefit from the services of financial institutions, or those not included in the system, by providing services based on the digital currencies, such as issuing smart sukuk and financing projects, collecting and managing zakat and charity funds for the purpose of supporting sustainable development, in member states, Al-Sijini pointed out.

The symposium included dialogue sessions, which witnessed fruitful discussions about the status of digital currencies and their future, focusing on the effects of the emergence of digital currencies on the financial system and the decisions of regulatory authorities and bodies, in this regard, in the first session, and in the second session, they tackled ways to adopt the use of digital currencies, in order to maintain the growth of the Islamic financial sector.