Malaysia-based IBF Net has announced a new program called “Benevolence” under which IBF DigiLabs, the technology arm of IBF Net, will leverage its in-house research output in the field of Islamic social finance to build and deliver a suite of blockchain based solutions. IBF DigiLabs has recently been nominated by Algorand as its strategic partner for the region.
The uniqueness of the “Benevolence” program comes from the introduction of social cryptos as the mechanism for incentivizing the contribution of both assets (donations) and efforts (volunteering). The use of social cryptos will complete the “benevolence” space by integrating what are traditionally viewed as two distinct frameworks – charity or donation of funds and contribution of time or volunteering of efforts, according to Dr. Mohammed Obaidullah, who has extensively written on the subject at ibfnet.blog. The integration with the help of the social cryptos will enhance the efficiency and effectiveness of the twin processes of mobilization and allocation of the scarce sadaqah or “benevolence-driven” resources. The first use case under this framework to go onstream is a platform to facilitate Qard al-Hasan (Benevolent Loan) using Algorand protocol, according to Mohammed Alim, CEO. The Qard al-Hasan product will provide for a range of scenarios under which lenders and borrowers may engage – with or without physical collateral, with or without personal guarantees or a mix of both. The product, thus can be customized to suit the requirements of Islamic lenders, pawnshops and microfinance providers.
IBF DigiLabs is a flagship initiative under IBF Net that focuses on providing smart technology-based solutions for Islamic commercial and social finance and for major sectors of the economy contributing to both the objectives of Shariah and the United Nations Sustainable Development Goals (SDGs). IBF DigiLabs’s solutions using emerging technologies coupled with the advent of Islamic Fintech are driven by its mission to leverage research and technology to create a halal ecosystem.