The Acceptance of Cryptocurrency for Zakat Transactions: Experts’ view on its issues readiness

Authors

  • Mohd Faiz Mohd Yaakob Universiti Utara Malaysia, School of Education, Sintok, Malaysia
  • Aliff Nawi Universiti Utara Malaysia, School of Education, Sintok, Malaysia
  • Raja Rizal Iskandar Universiti Utara Malaysia, Islamic Bussiness School, Sintok, Malaysia
  • Akhmad Habibi Jambi University, Faculty of Teaching Education, Jambi, Indonesia

DOI:

https://doi.org/10.21834/ebpj.v7i20.3419

Abstract

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Islam as a way of life. It has guided humankind in managing all matters of life in this world and hereafter, and so do financial matters. Cryptocurrency is a digital way of exchanging currency and a digital payment network based on blockchain technology. Over the last several decades, the technological and digital revolution has resulted in the creation and deployment of novel payment systems, with cryptocurrency being one of the most significant breakthrough payment methods for both commercial and personal use. Digital finance, specifically cryptocurrency, has become a phenomenon in the 21st century. Cryptocurrency is perceived as ready to be an alternative to fiat currency. This study discussed themes that can be used as guidelines for Islamic financial institutions (IFIs) to get themselves equipped once legally accepted globally. Despite the fact that there are currently over 2,000 cryptocurrencies on the market, Bitcoin is still the most well-known and was the first cryptocurrency coin to go mainstream. The problem for Muslims is whether cryptocurrency payment platforms are halal in Allah's and in accordance with Shariah principles. Blockchain technology should not be blamed as a cause for this matter. Blockchains function as a ledger system, and the fact that it is practically impossible to hack, modify, or cheat the blockchain platform or marketplace is why this technology is so significant. The use of blockchain technology eliminates the necessity for centralised financial organisations and businesses, as no central control is necessary. It even becomes a matter of kifayah obligations for Muslims to master it. However, it raises Shariah’s concerns on cryptocurrency's validity due to control and gharar issues. This study employed a qualitative approach to gather information about issues of readiness using cryptocurrency for zakat. Ten experts who were actively involved as academicians and industry participated in a semi-structured interview session. The study's findings discovered five major tenets, namely Knowledge, Security, economics, Improvisation, and Technology, that was successfully explored to the saturation point and is used as a guideline for the readiness to accept cryptocurrency in zakat transaction. This research contributes to the scientific advancement of cryptocurrency

Keywords: Issues of Cryptocurrency; zakat; Shariah; Readiness

eISSN: 2398-4287 © 2022. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BYNC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.

DOI: https://doi.org/10.21834/ebpj.v7i20.3419

Published

2022-06-26

How to Cite

Mohd Yaakob, M. F. ., Nawi , A. ., Iskandar , R. R. ., & Habibi , A. . (2022). The Acceptance of Cryptocurrency for Zakat Transactions: Experts’ view on its issues readiness . Environment-Behaviour Proceedings Journal, 7(20). https://doi.org/10.21834/ebpj.v7i20.3419