The Islamic Development Bank Institute (IsDBI) has partnered with SettleMint, a Belgium-based firm, to create a Smart Stabilization System (SSS) for financial markets that will utilize blockchain technology to maintain the stability of traded assets. The SSS will leverage an algorithm developed by SettleMint, which aims to prevent sudden price fluctuations caused by speculative market activity.
Although the specifics of the Smart Stabilization System (SSS) are not widely available, it is believed that the system will maintain an equilibrium between supply and demand by utilizing smart contracts. According to sources, the SSS will automatically initiate a purchase if there is a shortage of buyers, while it will trigger a sale and borrow assets to complete the transaction if there is a lack of sellers. Despite potential vulnerabilities in the system, IsDBI and SettleMint assure that blockchain-based technology is immune to manipulation.
Matthew Van Niekerk, the CEO of SettleMint, expressed his honor in working with the Islamic Development Bank Institute to develop and implement innovative mechanisms that could improve the transparency, efficiency, and stability of trading activities worldwide, particularly during times of economic uncertainty.
