Pay Zakat Online with Cryptocurrency

Zakat is a compulsory religious obligation in Islam, which involves the payment of a certain portion of one’s wealth to help the poor and needy. It is one of the five pillars of Islam and is considered an act of worship that purifies the soul and wealth of a Muslim. The word “Zakat” comes from the Arabic word “Zakaa”, which means growth, purification, and blessing.

Zakat belongs to the poor and needy, and it is calculated based on the amount of wealth a Muslim possesses, including cash, gold, silver, investments, and other assets. It is a fixed percentage of the wealth, which varies depending on the type of asset. For example, the Zakat rate for cash is 2.5%, while for gold and silver, it is 2.5% of their value.

Zakat is calculated on an annual basis, and it is only applicable to those Muslims who have reached the minimum threshold of wealth, which is known as Nisab. The Nisab is equal to the value of 87.48 grams of gold or 612.36 grams of silver. If a Muslim’s wealth exceeds the Nisab, they are required to pay Zakat.

In addition to cash, gold, and silver, Zakat is applicable to other types of assets, including agricultural produce, livestock, and business profits. The Zakat ratesfor these assets vary, and they are calculated differently.

Zakat is distributed to the poor and needy in the society, including widows, orphans, travelers, and those in debt. It is also used for the betterment of the society, such as building mosques, schools, and hospitals.

The calculation of Zakat is based on the guidelines prescribed in the Quran and the Hadith. The Quran states, “And establish prayer and give Zakat, and whatever good you put forward for yourselves – you will find it with Allah. Indeed, Allah of what you do, is Seeing” (Quran 2:110).

The Hadiths also provide guidance on Zakat, including the famous saying of the Prophet Muhammad (peace be upon him), “The wealth of a person is not diminished by giving Zakat; rather, it increases.”

In summary, Zakat is a compulsory religious obligation in Islam, which involves the payment of a certain portion of one’s wealth to help the poor and needy. It is calculated based on the type and value of assets owned, and it is distributed to those in need. Zakat is considered an act of worship that purifies the soul and wealth of a Muslim, and it is an important part of Islamic finance and social welfare system.