IBF Net, the Malaysia-based company, has said that it is planning to implement blockchain technology in Islamic charities.
It has been reported according to a press release on its blog that blockchain technology will enhance the confidence of existing donors, as it will also encourage new donors to give their zakat, a payment made under Islamic law for charitable giving, and sadaqah, or voluntary charity.
However, the product called “RecurPay” will be on the Tezos platform and facilitate recurring and automatic small payments.
IBF Net said that 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.
Malaysian firm IBF Net developing blockchain app to facilitate recurring charity giving https://t.co/ug2xcCg4aI — Cointelegraph (@Cointelegraph) September 12, 2020
Mohammed Alim, the CEO of IBF Net, said that the implementation of blockchain technology will bring many advantages to an 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.
Source: Cointelegraph | Image: PYMNTS