Blockchain in Islamic Finance

The course focuses on how blockchain is or can be applied to the Islamic Banking industry, by analyzing a few possible use cases and its benefits.

Blockchain is undoubtedly changing the world. It is the technology likely to have the greatest impact on the future of the world economy.

Considered for long a new technology, blockchain is developing fast, and is quickly becoming a key player in many industries including the financial sector.

Who will benefit from the course?

This program is open to everyone and especially designed for people working in:

• Banking.

• Islamic Banking and Finance.

• IT.

• Payments companies.

• Public sector, given the public policy aspects of Banking.

• Academia.

• Fintech Leaders.

• Islamic FinTech.

• Digital Banking Managers.

• Banking Heads.

• Start-up Leaders.

The Islamic Finance industry is growing fast. Like the conventional financial system, Islamic Finance features institutions such as banks, capital markets, investment firms, etc. According to the 2018 Islamic Financial Services Industry Stability Report by the Islamic Financial Services Board in Malaysia, the Islamic financial services industry’s total value has exceeded the US$2 trillion mark, and it is expected to grow 10%-12% over 2021-2022, S&P Global Ratings said. The main growth drivers were sukuk (sharia-compliant bonds) issuances. 

More and more banks in the Islamic world — a community of nearly 2 billion people worldwide — are adopting blockchain technology. 

For example, in 2017, the UAE’s Emirates Islamic became the first Islamic bank to use blockchain technology, namely for fraud prevention. 

Is it possible to apply Blockchain in the area of Islamic Banking and Finance? What would be the advantages of doing so? 

OUTLINE OF THE WORKSHOP. 

DAY 1. 

Introductions

EXERCISE 1 

DEBATE 1 

3.Traditional banks vs FinTech: a cooperative relationship rather than competitive. 

4.-Introduction to Islamic FinTech: a rising area. 

EXERCISE 2 

DEBATE 2 

5.-Islamic Banking and Finance: 

• Global overview of the industry. 

• Key players. 

• Key drivers. 

• Islamic Banking Principles. 

• Key Characteristics of Islamic Banking Operations 

• Islamic Retail Banking Services 

• Islamic Investment Management Services 

• Corporate Banking Services 

• Investment Banking in Islamic Banks 

6.- Overview of the Islamic banking industry in the MENA Region and East Asia. 

Business Case 1, to be solved during the workshop and discussed that same first session. 

DAY 2 

Complete discussion on Business Case

8.-Blockchain in Islamic Banking and Finance: 

a. Blockchain: a technology that can change the world. 1. Applications of Blockchain a. Crypto currencies. 

b. Central Bank Digital Currencies (CBDCs). 

c. Smart contracts. 

d. Healthcare. 

1. • Blockchain regulation across the globe. 

   1. • Blockchain in Banking: the role of DLT in Financial Services. Potential use cases and possible benefits. i. Zakat collection and distribution 

   2. ii. Smart sukuk. 

   3. iii. Waqf. 

   4. iv. Trade Finance. 

   5. v. Payments. 

   6. vi. Clearance and settlement systems. 

   7. vii. Customer KYC and Fraud Prevention. 

   8. viii. Securities. 

   9. ix. Loans and Credit. 

   10. x. Fundraising. 

   11. xi. Accounting and auditing. 

   12. xii. Others. 

9.- Cryptocurrencies in Islamic Finance: halal or haram? Overview of the main theories and practical examples. 

10.-Artificial Intelligence (AI) in Islamic Banking and Finance. 

11.-Others: The Future of Money. 

• Central Bank Digital Currencies (CBDCs).