Islamic Finance Global (source: IFRC.org)

In the lead up to Blockchain and the future of the for-purpose sector (July 10,Melbourne), Melbourne Development Circle is talking to companies and organisations about what is going on in the blockchain space here in Melbourne.

Amanda Robinson shared an example from International Federation of the Red Cross (IFRC).

Case study: Red Cross Blockchain

The value of global Islamic Social Finance is projected to grow from $1.9 trillion currently to $3.5 trillion by 2021. There is increasing awareness that through more effective management and distribution, Islamic Social Finance can play a major role in bridging the gap between available funding and growing humanitarian and development needs. For example, Zakat, an obligation for Muslims to give alms, is already one of the largest existing forms of wealth transfer whereby eligible Muslims are required to donate at least 2.5 per cent of their wealth to improve the welfare of those in need of assistance. But collection of zakat and other types of Islamic Social Finance is largely unregulated and disjointed, which presents a strategic opportunity to engage and direct funding to sustainable and impactful social and humanitarian initiatives.

In early 2018, a blockchain application developed by the International Federation of the Red Cross and AidTech won a global finance competition (FinTech Islamic Finance Challenge). The application promotes traceability and transparency of Islamic Social Finance, and offers individuals and organisations the ability to track their contributions in highly complex humanitarian settings.

Read more about it here: http://media.ifrc.org/ifrc/press-release/ifrc-blockchain-application-wins-global-islamic-finance-competition/.