Towards Transforming Zakat Collection and Distribution Roles Using Digital Wallet in Support of Social Justice and Social Financing

Abstract

Digitalisation is a new phenomenon in the beginning of the twenty first century as it connects and benefits a wider scope of humanity in a smart and elegant way. As most of the world’s humanity are in poverty and refugees throughout the world are majority Muslims, zakat as a tool can play a role in bringing social justice and social financing to them. According to an expert, it is high time that the adoption of blockchain concept as in digital wallet would be the solution in dealing with Islamic matters for example zakat collection and distribution. The objectives of this paper is to study the potential adoption of blockchain as in digital wallet towards the transformation of zakat collection and distribution roles to those in need. The methodology is using previous studies by reviewing the literatures and utilising secondary data to analyse and interpret data. With the dynamic technological development especially the emergence of blockchain technology, zakat ecosystem could be further enhanced as blockchain offers an immutable, security, trustworthy, and transparent. However, before this can be realized, the Ulama (Islamic Scholars) need to accept and understand the concept of blockchain technology as in digital wallet in the perspective of Maqasid al-Shari’ah.