In order to enable zakat donations using digital assets, the Dubai-based cryptocurrency trading platform Fasset has announced a ground-breaking partnership with Indonesia’s Salam Setara Amil Zakat Institution, a partner of the well-known charity platform Kitabisa. This effort, which enables people to use cryptocurrency, namely Tether (USDT), to fulfill their religious requirements, represents a significant milestone in Indonesia.
Pioneering Crypto Zakat Donations
The partnership was formalized on March 18 with the signing of a Memorandum of Understanding (MoU) at Fasset’s regional office in Sudirman, Central Jakarta. By leveraging blockchain technology, Fasset aims to revolutionize Islamic finance by making zakat contributions more accessible to Indonesia’s vast Muslim population.
One of the biggest Muslim communities in the world is found in Indonesia, which has a strong tradition of charity, especially during Ramadan. One of the main tenets of Islam is zakat, which mandates that qualified Muslims give away a part of their money to charity each year. The use of cryptocurrency into zakat payments offers a contemporary and effective method of charitable giving, especially since the Indonesian National Zakat Agency (Baznas RI) aims to collect Rp50 trillion ($3 billion) in Islamic donations by 2025.
Enhancing Digital Islamic Finance
Fasset Indonesia’s Country Director, Putri Madarina, emphasized that the initiative is a strategic step toward merging technological advancements with social worship. “This collaboration is our first step in Indonesia, but we plan to expand our services globally to enable more users to make zakat payments through crypto,” she stated. Madarina also highlighted Fasset’s commitment to developing further fintech innovations to support financial inclusion within the Islamic economy.
Kitabisa’s CEO, Vikra Ijaz, echoed this sentiment, expressing enthusiasm over the partnership’s potential to increase zakat literacy and optimize its collection and distribution. “We believe this initiative will help unlock zakat’s full potential in Indonesia, allowing us to tackle poverty through innovative and sustainable financial management,” Ijaz said.
Indonesia’s Growing Crypto Adoption
The initiative comes as Indonesia experiences a surge in cryptocurrency adoption. According to the Financial Services Authority of Indonesia, the country boasts 22.9 million crypto investors, with approximately 62% of them aged between 18 and 30. The growing interest in digital assets among younger generations underscores the demand for expanded crypto applications, including charitable giving.
Menwhile, in a separate development, Aave v3, a leading decentralized finance (DeFi) protocol, has launched on Celo, a blockchain platform designed for mobile users. This integration is expected to enhance financial accessibility by enabling Celo users to lend, borrow, and earn yields on their staked assets.
Both CELO and AAVE tokens saw minor drops in value despite these technological developments, which was consistent with the general market deterioration brought on by persistent global economic uncertainty. Nonetheless, the growth of blockchain-based financial services is still gaining momentum, indicating a revolutionary change in digital banking on a global scale.
Indonesia is leading the way in incorporating blockchain technology into Islamic financial practices with the introduction of Fasset’s cryptocurrency zakat service, opening the door to a more technologically sophisticated and inclusive donation ecosystem.
