IBF Net, based in Malaysia, aims to implement blockchain technology in Islamic charities.
According to a press release on his blog, Blockchain technology will increase the trust 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 available on the Tezos platform and will enable small automatic and recurring payments.
IBF Net said that blockchain technology would create a framework that would allow the donor to ensure that their payments, whether it be zakat, sadaqah or monetary donations, reach the beneficiaries. If they have donations for a large project that is being implemented gradually, the donor can see the effect of their contribution in certain steps.
According to Mohammed Alim, CEO of IBF Net, the implementation of blockchain technology will bring many benefits to Islamic charities, such as greater transparency, lower brokerage costs and an improved donor base such as crypto donors.
The company made it clear that blockchain application wouldn’t be limited to just charities. RecurPay can then be used in electronic commerce.
The cryptocurrency world has been looking for charities for a while. As the COVID-19 pandemic progressed, cryptocurrency companies began donating or setting up charities to raise money for frontline workers. The charity Give.org has also launched a privacy-focused blockchain platform to facilitate donations.