Blockchain for doing good.
Malaysia-based company IBF Net said it is seeking to implement blockchain technology in Islamic charities.
According to a press release on its blog, blockchain technology will enhance the confidence of existing donors. It will also encourage new donors to give their zakat, a payment made under Islamic law for charitable giving, and sadaqah, or voluntary charity. The product, called RecurPay, will be on the Tezos platform and facilitate recurring and automatic small payments.
IBF Net said blockchain technology would create a framework that will allow the donor to ensure that their payments, whether it is zakat, sadaqah, or cash endowments, reach the beneficiaries. If they have donations for a large project that is being implemented in stages, the donor can see the effect of their contribution on specific steps.
According to IBF Net CEO Mohammed Alim, the implementation of blockchain technology will bring many advantages to Islamic charity, for example, enhanced transparency, reduced cost of intermediation, and an enhanced donor base like crypto-donors.
The company clarified that the application of blockchain would not be limited to charitable works only. Later on, RecurPay may be applied in electronic commerce.
The crypto world has been looking at charities for some time. As the COVID-19 pandemic goes on, crypto firms began giving or setting up charities to raise money for frontline workers. The charity Give.org also launched a blockchain platform focused on privacy to facilitate donations.