Malaysia has become the first country in the world to accept zakat payments through digital assets, marking a significant step forward in integrating Islamic practices with modern financial technology.
The Federal Territories Islamic Religious Council’s Zakat Collection Centre (PPZ-MAIWP) spearheaded this initiative, aiming to educate Muslims about fulfilling zakat obligations in the digital age. Chief Executive Officer Datuk Abdul Hakim Amir Osman emphasized that this effort aligns with the evolving financial landscape and addresses the growing interest in blockchain and cryptocurrency among the younger generation.
According to Buletin TV3, Malaysians collectively own digital assets valued at RM16 billion, a portion of which is now subject to zakat. Notably, over 54% of cryptocurrency investors in the country are aged between 18 and 34.
“The digitalisation of religious practices demonstrates that Islam continues to evolve and adapt to the evolving needs of its followers,” remarked Abdul Hakim. He further highlighted that digital currency is recognized as a tradable commodity, with business zakat set at a standard rate of 2.5%.
The adoption of cryptocurrency for zakat payments has already shown promising results. Zakat collection from digital assets surged by 73%, reaching RM44,991.97 this year compared to RM25,983.91 in 2023.
This progressive step underscores Malaysia’s commitment to blending tradition with technology, setting an example for the Islamic world to embrace innovation while preserving religious values.
Via – NST.COM.MY