Thomas Daniels
In an innovative step for Islamic finance, Salam Setara Amil Zakat Institution, a Kitabisa zakat distribution partner, has teamed up with Dubai-based cryptocurrency trading platform Fasset to launch cryptocurrency-based zakat payments in Indonesia. An important step toward incorporating blockchain technology into Islamic generosity has been taken with this effort, which allows Indonesian cryptocurrency users to use USDT (Tether) to satisfy their zakat responsibilities.
Connecting Islamic Philanthropy and Crypto
On March 18, a Memorandum of Understanding (MoU) was signed at Fasset’s regional headquarters in Sudirman, Central Jakarta, formally establishing the partnership. The project is in line with the overarching objective of using blockchain technology to improve Islamic finance’s financial inclusiveness.
With 87.06% of its people identifying as Muslim, Indonesia is home to one of the largest Muslim populations in the world. The country has a long history of religious giving, especially during Ramadan. Zakat, one of the Five Pillars of Islam, encourages social welfare and economic fairness by requiring Muslims to give away a percentage of their money each year to those in need.
In keeping with its important role in economic empowerment, the Indonesian National Zakat Agency (Baznas RI) hopes to amass Rp50 trillion ($3 billion) in zakat funds by 2025. Fasset and Salam Setara Amanah Nusantara aim to modernize the zakat ecosystem by including cryptocurrency donations, which use blockchain technology to make donations more effective and accessible.
Fasset Considers International Growth
The crypto zakat program is making its debut in Indonesia with aspirations to expand globally, according to Putri Madarina, Country Director of Fasset Indonesia.
The integration of technology innovation into social religion, particularly during the holy month of Ramadan, is a calculated move. Fasset’s dedication to fintech innovation is highlighted by Madarina, who expressed the hope that this effort will serve as a model for digitally based Islamic financial inclusion in Indonesia.
Vikra Ijaz, CEO of Kitabisa, praised the collaboration and pointed out how it could enhance zakat literacy and optimize its effects through digital solutions.
“With creative and sustainable management, we hope this initiative can maximize zakat’s potential in Indonesia and help us achieve our shared goal of reducing poverty,” Ijaz stated.
Growing Youth Adoption of Cryptocurrency in Indonesia
22.9 million Indonesians invest in cryptocurrencies, with 62% of them being between the ages of 18 and 30, according to data from the country’s Financial Services Authority (OJK). Indonesia is a viable market for blockchain-powered zakat donations because of this generational transition, which highlights the rising need for financial solutions based on cryptocurrency.
Fasset’s crypto zakat project may be a template for other countries with a majority of Muslims as Islamic banking continues to embrace digital innovation, promoting increased financial inclusion and economic growth.
