Blockchain and Zakat Management: A Comparative Readiness-Based Analysis of Malaysia and Indonesia

ABSTRACT Purpose- This study assesses the readiness of Malaysia and Indonesia for blockchain-based Zakat management across five critical dimensions: Regulatory & Legal, Governance & Institutional, Technological & Infrastructure, Institutional & Human Capital, and Ecosystem & Stakeholder. The aim is to identify strengths, gaps, and patterns that shape effective blockchain adoption. Methodology- A comparative secondary data analysis was conducted, drawing exclusively on peer-reviewed journal articles documenting blockchain applications in Zakat and on studies providing empirical evidence on the five dimensions in Malaysia and Indonesia. Both qualitative insights and quantitative scoring were synthesized to enable a multi-dimensional comparative evaluation. Findings- Malaysia demonstrates high readiness, driven by structured regulatory frameworks, active Shariah governance, operational blockchain pilots, advanced technological infrastructure, and strong institutional capacity. Indonesia exhibits moderate-to-low readiness, with fragmented governance, evolving regulatory frameworks, uneven technology deployment, and limited human capital, though early ecosystem initiatives indicate potential for growth. Dimension-specific scoring highlights Malaysia’s advantage in regulatory clarity, institutional strength, and technological capability, while Indonesia shows relative promise in early ecosystem engagement. Implications- Findings underscore opportunities to enhance transparency, traceability, and efficiency in Zakat collection and distribution through blockchain. Policymakers and Zakat authorities should prioritize regulatory harmonization, capacity development, digital literacy, and multi-stakeholder collaboration to support scalable, Shariah-compliant adoption. Originality/Value- This research provides the first structured, multi-dimensional comparative assessment of blockchain readiness in Zakat management, offering practical and scholarly insights. Limitations- Reliance on secondary data may introduce inconsistencies due to varying reporting depths. Keywords: Blockchain, Zakat Management, Comparative Readiness, Malaysia, Indonesia