Jeddah, Kingdom of Saudi Arabia:– The Islamic Development Bank Institute (IsDBI) has kicked off building a prototype for its patent-pending Smart Stabilization System. The start of the prototype development came in the wake of a meeting on 16 October 2023 among the partners in the project.
The system is based on an algorithm to maintain the stability of assets traded on organized markets. It can be adapted for any kind of asset type, including shares, sukuk, and digital currencies, as well as central banks' digital currencies (CBDCs).
The in-depth analysis conducted by the Institute demonstrated the system’s potential to significantly reduce the volatility of the traded asset without the need for capital or external reserves.
This project aligns with the Institute’s strategic objective to provide fintech knowledge solutions to the Islamic finance industry in IsDB Member Countries and worldwide.
The Knowledge Solutions Team at the Institute is leading the project in partnership with SettleMint, a blockchain transformation company that supports developers to integrate blockchain technologies into applications. The company was established in 2016 in Belgium, with offices in Saudi Arabia, the United Arab Emirates, India, and Singapore.
For more information about the project, please contact Dr. Hilal Houssain at email@example.com
About the Islamic Development Bank Institute
The Islamic Development Bank Institute is the knowledge beacon of the Islamic Development Bank Group. Guided by the principles of Islamic economics and finance, the IsDB Institute leads the development of innovative knowledge-based solutions to support the sustainable economic advancement of IsDB Member Countries and various Muslim communities worldwide. The IsDB Institute enables economic development through pioneering research and original economic analysis, human capital development, and knowledge creation, dissemination, and management. The Institute leads initiatives to enable Islamic finance ecosystems, ultimately helping Member Countries achieve their development objectives. More information about the IsDB Institute is available on https://isdbinstitute.org/