Islamic Finance: Using blockchain to improve transparency of zakat process

Today I attended the first day of 2nd Islamic Fintech Dialogue (@ Kuala Lumpur, Malaysia). For now, I will like to share this interesting article…

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This article first appeared in Personal Wealth, The Edge Malaysia Weekly, on August 27, 2018 – September 02, 2018.

The collection of zakat has been institutionalised in many Muslim countries. The promotion, collection and distribution of zakat are undertaken by the respective religious authorities according to shariah requirements.
However, there are several challenges, according to research papers. They include inefficiency, a lack of transparency in terms of how the funds are collected, managed and distributed, the differing views of Islamic scholars on how these should be dealt with and extensive bureaucracy.
To address these challenges, Dr Ziyaad Mahomed, associate dean of executive education and e-learning at the International Centre for Education in Islamic Finance (INCEIF), and his team have come up with an Islamic social financing app that leverages blockchain technology. The app — which won first prize in a competition organised by the Islamic Development Bank Group and the…

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The Connection Between Zakat and The Economic System (Social Security)

......As zakat is a means of money passing from the hands of one person to another, who may benefit from it and dispose of it, and this is regulated by the general principles that are derived from the Qur’an and Hadith, we may say that in this sense zakat is indeed a part of the Islamic economic system; there are texts which explain the kinds of wealth on which zakat is to be paid and the amounts due, and those to whom zakat may be given, and how it is to be paid. All that is well known. [Find your answer here......]

Who are The People Entitled to Receive Zakat?

Zakat is to be paid to the eight categories mentioned in the Saying of Allah: Which means: "Zakat expenditures are only for the poor and for the needy and for those employed to collect [zakat] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler - an obligation [imposed] by Allah . And Allah is Knowing and Wise." [Al-Quran, Surah At-Tawbah, verse 60]....