Cryptocurrency Becomes Acceptable as Zakat at An Islamic Microfinance Startup

Cryptocurrencies became a fad some months ago and now to encourage the usage among the Muslim population, an Islamic microfinance start-up Blossom Finance has started accepting zakat payments in cryptocurrencies for zakat-eligible cryptocurrency assets in response to user demand, Matthew Joseph Martin, its CEO.

Zakat is one of the pillars of of Islam, which is a commandment to all eligible Muslims to donate at least 2.5% of their wealth to charity.

Martin told Salaam Gateway,

“[A woman in the U.S.] said she had $20,000 in zakat to pay on her crypto assets but was not able to find a facility to send zakat payment from her cryptocurrency assets,”

Blossom Finance, which is US registered will receive these cryptocurrency payments will be directly via the blockchain to a designated wallet address held at a cryptocurrency exchange in Indonesia.

Blossom has an office in Jakarta, which will then channel the zakat to the Indonesian financial cooperative Baitul Maal Wat Tamwil (BMT) that will distribute the funds to any of the 87 microfinance institutions that the start-up has agreed to partner with.

The U.S. zakat-payer’s $20,000 in cryptocurrencies will be channeled to non-profit institution Rahmania Foundation in Sumatra that manages donations to help orphans and needy children, Martin said.

The number of people buying and selling cryptocurrencies has grown rapidly in Indonesia.

Last month, a new type of Sharia-approved crypto is cropping up to serve these wealthy Islamic populations where a startup in Dubai has now created a cryptocurrency that will be backed by one of the world’s most stable assets: gold, creating gold-based crypto.

Read more: Gold-based Crypto for Muslims that Comply with Sharia

KryptoMoney.com publishes latest news and updates about Bitcoin, Blockchain Technology ,Cryptocurrencies and upcoming ICO’s.