An Analytical Study of Digital Zakat, Fintech, Blockchain, and the Legal Dimensions of Islamic Charity

Sk Noor Mahammad

 

Abstract: This article aims to study the impact of digital finance on zakat (mandatory almsgiving) and the conflicts which this transition to digital collection and distribution has caused. The main point made is that even though the use of digital platforms has facilitated and broadened the scope of zakat payment, the concerns related to the acquisition of zakat as a religious obligation cannot be resolved through technology alone. It is claimed that a significant and positive change can be achieved by implementing user-friendly, reliable, and Shari’ah-compliant digital distribution systems that can bring back the public trust in zakat management. Researchers using a doctrinal approach and a comparative method cite classical texts of Islamic jurisprudence, modern laws, and zakat platforms based on fintech and blockchain as case studies. The outcomes of the analysis indicate that the proper adoption of digital means, along with legal regulation and moral supervision, can increase the effectiveness, transparency, and social outreach of zakat to the maximum. The article finally states that the careful blending of digital finance can make zakat an even more potent tool for social justice, which, however, will not be at the expense of its spiritual and moral underpinnings.