Abstract
Distrust to zakat institutions is one of the causes zakat funds not reaching the potential amount in Indonesia. Blockchain technology, with its capability of tracing, can provide transparency information. The Blockchain-based Zakat can potentially overcome distrust issues to zakat institutions. However, the legal status of cryptocurrency is still skeptical. This study aims to see the feasibility of CBDC can be implemented in blockchain-based Zakat in Indonesia. The method used in this research is the qualitative method. An extensive literature review method was utilized to identify and analyze the relevant literature in order to propose the model. This study suggests Blockchain-based Zakat with the use of CBDC and BAZNAS as the zakat agencies.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Andayani, D.R., et al.: Statistik Zakat Nasional 2018 (2019). https://baznas.go.id/szn2018
BAZNAS Center of Strategic Studies. (2017). https://www.puskasbaznas.com:http://puskasbaznas.com/outlook/indonesia-zakat-outlook-2017/69-outlook-zakat-indonesia-2017-english
Boar, C., Holden, H., Wadsworth, A.: Impending arrival – a sequel to the survey on central bank digital currency (2020). SSRN
Lee, D.K.C., Yan, L., Wang, Y.: A global perspective on central bank digital currency. ChinaEcon. J. 14(1), 52–66 (2021)
Farooq, M.S., Khan, M., Abid, A.: A framework to make charity collection transparent and auditable using blockchain technology. Comput. Electr. Eng. 83, 106588 (2020). https://doi.org/10.1016/j.compeleceng.2020.106588
Kahf, M.: Zakat: unresolved Issue in the contemporary Fiqh. J. Islamic Econ. 2(1) (1989). https://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/9/9
Khan, N., Ouaich, R.: Feasibility analysis of blockchain for donation-based crowdfunding of ethical projects. In: Al-Masri, A., Curran, K. (eds.) Smart Technologies and Innovation for a Sustainable Future: Proceedings of the 1st American University in the Emirates International Research Conference—Dubai, UAE 2017, pp. 129–139. Springer, Cham (2019). https://doi.org/10.1007/978-3-030-01659-3_17
Klein, M., Groß, J., Sandner, P.: The digital euro and the role of DLT for central bank digital currencies. Frankfurt School Blockchain Center Working Paper (2020). www.fs-blockchain.decontact@fs-blockchain.dewww.twitter.com/fsblockchainwww.facebook.de/fsblockchain
Kosba, A., Miller, A., Shi, E., Wen, Z., Papamanthou, C.: Hawk: the blockchain model of cryptography and privacy-preserving smart contracts. In: Proceedings of the 2016 IEEE Symposium on Security and Privacy, SP 2016, pp. 839–858 (2016). https://doi.org/10.1109/SP.2016.55
Koulu, R.: Blockchains and online dispute resolution: smart contracts as an alternative to enforcement. Scripted 13(1), 40–69 (2016). https://doi.org/10.2966/scrip.130116.40
Lee, J., Seo, A., Kim, Y., Jeong, J.: Blockchain-based one-off address system to guarantee transparency and privacy for a sustainable donation environment. Sustainability 10(12), 4422 (2018). https://doi.org/10.3390/su10124422
Lushi, T.: Charity token - improving trust on charity organizations through blockchain technology. In: 2019 International Conference at the Brno University of Technology, Brno (2019)
Miscione, G., Ziolkowski, R., Zavolokina, L., Schwabe, G.: Tribal governance: the business of blockchain authentication. In: Proceedings of the Annual Hawaii International Conference on System Sciences, January 2018, pp. 4484–4493 (2018). https://doi.org/10.24251/hicss.2018.566
Nor, R.M., Rahman, M.M.H., Rahman, T., Abdullah, A.: Blockchain Sadaqa mechanism for disaster aid crowd funding. In: Proceedings of the 6th International Conference on Computing and Informatics: Embracing Eco-friendly Computing, vol. 211, pp. 400–405 (2017). http://www.uum.edu.my
Nur, M., Salikin, M., Yahya, N.: Blockchain-based Zakat collection to overcome the trust issues of Zakat payers. Int. J. Percept. Cogn. Comput. 7(1), 53–58 (2021)
Obaidullah, M., Shirazi, N.S.: Islamic Social Finance report 1436H (2015). Islamic Research and Training Institute (IRTI) (2015). https://irti.org/product/islamic-social-finance-report-1436h-2015/
Owoyemi, M.Y.: Zakat management: the crisis of confidence in zakat agencies and the legality of giving zakat directly to the poor. J. Islamic Acc. Bus. Res. 11, 498–510 (2020). https://doi.org/10.1108/jiabr-07-2017-0097
Qardawi, Y.Al.: Fiqh Al Zakah: A Comparative Study of Zakah, Regulations and Philosophy in the Light of Qur’an and Sunnah, vol. I. King Abdulaziz University (1999)
Rejeb, D.: Blockchain and smart contract application for Zakat institution. Int. J. Zakat 5(3), 20–29 (2020). https://doi.org/10.37706/ijaz.v5i3.260
Saleh, H., Avdoshin, S., Dzhonov, A.: Platform for tracking donations of charitable foundations based on blockchain technology. Actual Prob. Syst. Softw. Eng. (APSSE) 2019, 182–187 (2019). https://doi.org/10.1109/APSSE47353.2019.00031
Samir, B.Y.N., Fadili, I.E.L.: Empowering Lives With Zakat: Why We Need More Transparency And Innovation, February, pp. 62–64 (2019). https://worldfinancialreview.com/empowering-lives-with-zakat-why-we-need-more-transparency-and-innovation/?__cf_chl_jschl_tk__=37c8f5c81eb6f3f43b957704370471ec24bc1a76-1584575226-0-AVpv9xm_1T2z5F3DlzNqbdM1pQiihFhO9xcueJ_Hlap2JjYDzeEGI_kADqsVjM77G9Ybk5DT7z
Sillaber, C., Waltl, B.: Life cycle of smart contracts in blockchain ecosystems. Datenschutz Und Datensicherheit - DuD 41(8), 497–500 (2017). https://doi.org/10.1007/s11623-017-0819-7
Singh, A., Rajak, R., Mistry, H., Raut, P.: Aid, charity and donation tracking system using blockchain. In: Proceedings of the 4th International Conference on Trends in Electronics and Informatics, ICOEI 2020 (2020). https://doi.org/10.1109/ICOEI48184.2020.9143001
Sulaiman, H., Jamil, N.: Information security governance model to enhance zakat information management in Malaysian zakat institutions. In: Conference Proceedings - 6th International Conference on Information Technology and Multimedia at UNITEN: Cultivating Creativity and Enabling Technology Through the Internet of Things, ICIMU 2014, pp. 200–205 (2015) https://doi.org/10.1109/ICIMU.2014.7066630
Wandhöfer, R.: The future of digital retail payments in Europe: a place for digital cash? J. Payments Strategy Syst. 11(3), 248–258 (2017). https://www.semanticscholar.org/paper/The-future-of-digital-retail-payments-in-Europe-%3A-A-Wandhöfer/c60e5311d09a27d15e8a1f50e57562773561bc44
Widjaja, G.: Legality of cryptocurrency in Indonesia. Adv. Bus. Res. Int. J. 5(2), 76 (2019). https://doi.org/10.24191/abrij.v5i2.9997
Widyastuti, R.A.Y.: BI Rumuskan Pembuatan Uang Digital, Seperti Apa Bentuknya? - Bisnis Tempo.co (31 May 2021). https://bisnis.tempo.co/read/1467362/bi-rumuskan-pembuatan-uang-digital-seperti-apa-bentuknya?page_num=2. Accessed 9 Sep 2021
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Zulfikri, Z., Sa’ad, A.A., Kassim, S., Othman, A.H.A. (2023). Feasibility of Central Bank Digital Currency for Blockchain-Based Zakat in Indonesia. In: Alareeni, B., Hamdan, A. (eds) Innovation of Businesses, and Digitalization during Covid-19 Pandemic. ICBT 2021. Lecture Notes in Networks and Systems, vol 488. Springer, Cham. https://doi.org/10.1007/978-3-031-08090-6_23
Download citation
DOI: https://doi.org/10.1007/978-3-031-08090-6_23
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-08089-0
Online ISBN: 978-3-031-08090-6
eBook Packages: EngineeringEngineering (R0)