Blockchain and Smart contract’s contributions to Zakat management system

Rejeb, Dhiaeddine

doi:10.37706/iconz.2020.207

Cited by 5 publications

(12 citation statements)

References 10 publications

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“…However, as crypto assets are considered as a legal investment, using the Shariah parameters provided by the Shariah Advisory Council of the Securities Commission Malaysia, one may invest in Shariah-compliant crypto assets and can pay zakat if he/she is eligible. As stated in the resolution, digital assets qualify as wealth, and as such, they must be subject to zakat (Securities Commission Malaysia, 2020). The Shariah advisory council of securities commission Malaysia has approved the use of digital tokens as digital assets on the condition that the rights, or benefits of using the asset be for Shariah-compliant purposes (Securities Commission Malaysia, 2020).…”

Section: Discussionmentioning

confidence: 99%

“…As stated in the resolution, digital assets qualify as wealth, and as such, they must be subject to zakat (Securities Commission Malaysia, 2020). The Shariah advisory council of securities commission Malaysia has approved the use of digital tokens as digital assets on the condition that the rights, or benefits of using the asset be for Shariah-compliant purposes (Securities Commission Malaysia, 2020). As the Perlis Fatwa Committee allows paying zakat due on cryptocurrencies, the significance of considering zakat in redistributing income from the Shariah perspective stands.…”

Section: Discussionmentioning

confidence: 99%

“…; and how to determine the Shariah status of a digital token? (Securities Commission Malaysia, 2020). …”

Section: Issues Related To Payment Of Zakat On Cryptocurrencies and C...mentioning

confidence: 99%

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Zakat payment from cryptocurrencies and crypto assets

Muneeza

Bin-Nashwan²,

Moshin³

et al. 2022

IMEFM

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Purpose This paper aims to examine the existing practice of accepting zakat payments using cryptocurrencies and crypto assets by discussing its Shariah issues. Design/methodology/approach This is qualitative research in nature, as unstructured interviews with experts in the field were conducted to understand the existing practice regarding zakat on cryptocurrencies/crypto assets while literature on the topic was reviewed to derive conclusions. Findings It is found that there are divergent views among contemporary Shariah scholars on the Shariah permissibility of cryptocurrency and crypto assets. As such, by evaluating the existing practices of some companies, this study has concluded that there is room to pay zakat using cryptocurrencies and from investments made on crypto assets. As long as they have been screened and classified as Shariah-compliant, they can be qualified to be part of one’s wealth from which zakat shall be paid. However, the findings of this research shall be subject to the fatwa and rules adopted in the specific jurisdiction in which the zakat payer resides. Laws made by the ruler to benefit the public ought to be considered in upholding the masalih (public interests) of all, which is in line with the legal maxim of “tasarruf al imam manut bi al-maslahah” (the ruler’s decision is dictated in favor of the people). Originality/value It is anticipated that the findings of this research will benefit zakat organizations and zakat payers in understanding how they should deal with cryptocurrencies and crypto assets in the collection and payment of zakat.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

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Zakat payment from cryptocurrencies and crypto assets

Muneeza

Bin-Nashwan²,

Moshin³

et al. 2022

IMEFM

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“…Blockchain can be divided into three, among others: public, private, or hybrid, depending on the application (Sultan, Ruhi, & Lakhani, 2018). Public blockchain is open by anyone, anywhere and can be used without prior permission.…”

Section: Kinds Of Blockchainmentioning

confidence: 99%

“…Zakat institutions will receive operational funds as an additional cost. Once the funds are raised, they will be exchanged for fiat money on the exchange platform for the parity "1 Tether = 1 Dollar" and transferred to mustahiq (Dhiaeddine Rejeb, 2020).…”

Section: Figure 1 How Blockchain Promotes Transactionmentioning

confidence: 99%

Zakat Blockchain: A Descriptive Qualitative Approach

Hamdani¹

2020

EkBis

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Zakat as a tremendously effective tool for poverty minimization and social problems resolution, just like digital wallets can be used and optimized within the potential use of blockchain technology. Furthermore, zakat blockchain is one of the media instruments to cut the chain of zakat management and distribution, which is complex and requires much time. The synergy of amil zakat and muzakki in zakat blockchain is the right answer for welfare and time efficiency in distributing zakat to asnaf wherever they are. The methodology employed in this research was descriptive qualitative. This research was a descriptive study because it described or elucidated the combination of zakat and blockchain in Indonesia. The research approach used was qualitative. The objects of this research were zakat institutions in Indonesia. The subject of this research was the mechanism between muzakki and nadzhir in Indonesia This study’s results stated the importance of blockchain application and implementation for better zakat management

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Zizwaf Digitalization: The Empowerment of People Economic’s Strategy Amidst Covid-19

Sari¹,

Syariati²

2022

IJAERS

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This study aims to analyze the ability of Zakat Management Organizations to utilize technology in supporting transaction activities as well as reporting ZISWAF fund management as a strategy in increasing payments and distribution of ZISWAF funds. The object of this study is the National Amil Zakat Agency (BAZNAS) of Makassar, representing an institution established by the government, and Dompet Dhuafa of South Sulawesi, as one of the institutions established by the community. This study is a qualitative study using a case study approach. Data consist of primary data obtained by conducting direct interviews with informants, and secondary data obtained through observation of the website or application of each organization. This study found that in Dompet Dhuafa of South Sulawesi, the use of IT is maximized by trying to reach millennials, considering that they tend to be more receptive to the use of IT as they found it easy to use. Meanwhile, at BAZNAS of Makassar, the use of IT is maximized on their applications that comply with PSAK 109 concerning Zakat and Infaq/Alms Accounting, considering the muzakki in BAZNAS are mostly either eldery or government emlpoyees that really concern about the perceived of usefulness of the technology. As a case study, this study is expected to be able to contribute to other organization and the government by providing a comprehensive picture of what should be done in maximizing the use of IT as a strategy to increase the number of ZISWAF payments in Indonesia, in order to empower the people's economic, especially in the current era of the Covid-19 pandemic.

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Blockchain and Smart contract’s contributions to Zakat management system

Cited by 5 publications

References 10 publications

Zakat payment from cryptocurrencies and crypto assets

Zakat payment from cryptocurrencies and crypto assets

Zakat Blockchain: A Descriptive Qualitative Approach

Zizwaf Digitalization: The Empowerment of People Economic’s Strategy Amidst Covid-19

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