2024 is the “year of crypto” with the value of Bitcoin increasing by more than 40% since early November. With the value of cryptocurrencies predicted to increase further next year, the Zakat Collection Center of the Federal Territory Islamic Religious Council (PPZ-MAIWP) has begun accepting zakat payments using it.
According to a report by TV3 Bulletin, this makes Malaysia the first country in the world to accept zakat payments using cryptocurrencies. PPZ-MAIWP Chief Executive Officer, Datuk Abdul Hakim Amir Osman said this is among the initiatives to guide Muslims about zakat responsibilities in the era of cryptocurrency and blockchain technology.
In the same report, the value of digital assets owned by Malaysians was reported to have reached RM16 billion and it is mandatory to zakat at a rate of 2.5% according to the Federal Territory Islamic Law Consultative Committee.
Zakat collection on digital assets increased by 73 percent with a collection of RM25,983.91 in 2023, while for this year it is around RM44,991.97. Accepting payments using crypto is another innovation by PPP-MAIWP which began accepting zakat fitrah payments using NFC last year.