FinTech & Cryptocurrencies: The Future Impact of Zakat in the New Financial and Digital Economy

FinTech technology and cryptocurrencies are part of the new era into the Islamic World. Bitcoin and Ethereum as a legitimate form of currency and investment in Islam. Shariah law emphasizes real economic activity based on physical assets and frowns upon pure monetary speculation. New cryptocurrencies are seeing the light getting the approval of GCC governments (as “Rain”, in Bahrain and other several shariah-compliant digital coins have been launched in the market). Since Islamic scholars around the world have mixed views on the use of digital currencies, the question now is How these new cryptos or cryptocurrences (or assets as new asset class) will affect to the Zakat (the third Pillar of Islam) in the coming years.

FinTech and Cryptocurrencies into the Isl...