Is it possible to use solid concrete blocks for foundation instead of size stone in loose soil condition?

Yes, but it isn’t your best choice.

Using solid concrete blocks is very much like using stone walls as a foundation. Either the ground or the blocks will need to be shaped to meet the needs of the building.

Mostly nowadays we use either reinforced concrete or reinforced concrete masonry units (CMU). Both of these can be built much stronger than solid blocks or stone, and in the case of concrete can be shaped very easily when compared solid blocks or stone.

Just so we are clear; the problem with solid block and stone is that unless you build rather large walls or footings the joints will crack with relatively little pressure from the building.

If you were imagining the same walls or footings without mortaring them you need to make them even larger and with tapering sides. Otherwise, the weight of the building can make your footings move or crumble.

So, unless you are big historical construction buff, I highly recommend you stick with modern concrete or CMU.