Indonesia has its sight set on a Sharia-compliant blockchain-powered exchange which is currently in the works, highlighting the country?s positive approach towards blockchain technology.
Indonesia?s Jakarta Futures Exchange (JFX) has teamed up with Allocated Bullion Exchange (ABX) and an Australian firm called Kinesis Money to develop the exchange. The three companies will mainly focus on coming up with better alternatives to the currently available financial offerings. They have targeted blockchain as the underlying technology because it can offer various advantages such as better security and faster service delivery.
?It?s increasingly become clear to us that the benefits of distributed ledger technology or ?blockchain? will unlock tremendous amounts of value for Indonesia and Indonesian people,? stated JFX head Stephanus Paulus Lumintang.
? Asian Correspondent (@AsCorrespondent) November 20, 2018
Indonesia is still working on blockchain regulatory frameworks
Lumintang also noted that Indonesia?s blockchain regulation is at a challenging stage that is currently ongoing but he also added that regulation is extremely important. He also believes that his company is ready to become a blockchain exchange firm that complies with the country?s regulatory requirements.
Lumintang stated that JFX?s joint efforts with ABX and Kinesis will not only allow them to leverage blockchain advantages but also to come up with a transparent and secure network. ABX and Kinesis have jointly developed a digital currency platform that is based on silver and gold and prices are monitored on the Kinesis Blockchain Exchange which is built on the Stellar network.
The Sharia permit is a vital part of the system
The network can handle over 300 transactions per second and it can also be integrated with fiat currency exchange services as well as mobile banking services. JFX and ABX have been working towards bringing gold investments into Indonesia and that has led to the launch of a Sharia Gold Contract. They did so after procuring the permit from the National Shariah Board and Indonesian regulators.
Thomas Coughlin, the ABX and Kinesis CEO stated that their custom blockchain network will compete with the traditional monetary system which facilitates digital exchanges as well as physical asset transactions. He also believes that the integration of distributed ledger technology and precious metals should generate significant value in Indonesia.