Malaysia makes history by becoming the first country in the world to accept Zakat payments via cryptocurrencies after the Federal Territories Islamic Religious Council-Zakat Collection Centre (PPZ-MAIWP) recently announced that it is now offering payment options using cryptocurrencies.
Accordingly, PPZ-MAIWP is the first Zakat institution to offer such a payment method, with its CEO, Datuk Abdul Hakim Amir Osman, asserting that the move was due to the need to guide Muslims about the responsibility of performing Zakat in regard to digital assets, in line with the advancements of blockchain technology and digital assets usage such as cryptocurrencies, digital tokens and Non-Fungible Token (NFT).
Malaysia becomes world’s first country to accept Zakat payments via cryptocurrencies
Sinar Harian quoted Abdul Hakim as saying that Zakat contributors can now perform Zakat directly using cryptocurrencies.
Furthermore, the initiative will also ensure that all groups can perform their Zakat responsibilities, regardless of the form of assets they own.
He asserted,
“The transformation in performing Zakat through a digital medium shows that Islam is always evolving and adapting to the needs of its ummah,”
Digital Zakat payments increased by 73% compared to in 2023
For illustration purposes
The PPZ-MAIWP CEO further revealed that in 2024, the institution had collected approximately RM45,000 in digital Zakat, a 73% increase compared to 2023.
Moreover, with cryptocurrencies such as Bitcoin, Ripple and Ethereum increasing in value, Abdul Hakim sees a huge potential in Zakat payments, especially from Muslim investors and businesspersons.
For reference, PPZ-MAIWP appointed Sharlife Sdn Bhd as its cryptocurrency Zakat collection agent, and those who intend to perform Zakat for their digital assets can visit the Sharlife.my portal.
Watch the video by PZZ-MAIWP on the launch event here:
So, what do you guys think of Abdul Hakim’s statement? Share your thoughts with us in the comments!
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