Must Zakat on money be paid with money?

The scholars differed on the ruling of giving monetary value instead of the actual item in Zakat, with several opinions. The majority held that it is impermissible, arguing that Zakat is an act of worship that is only valid if performed in the prescribed legal manner, and citing the hadith of Mu'adh: "Take grain from grain and a sheep from sheep..."

However, Imam Abu Hanifa and others permitted giving monetary value, citing the hadith of Mu'adh with the people of Yemen, where he told them: "Bring me a Khamis (a black woolen garment) or Labis (clothing) that I can take instead of the Sadaqa, for it is easier for you and better for the Muhajirin in Medina."

There is also a middle ground adopted by Shaykh al-Islam Ibn Taymiyyah and Al-Shawkani, which is the permissibility of giving monetary value if there is a need or an overriding benefit for the poor person. They support this by arguing that the secret behind Zakat is to meet the needs of the poor, and if giving monetary value is more beneficial for the poor person, then it is permissible. They also argue that the first hadith of Mu'adh was not meant to restrict, but rather to explain the original principle, and that Mu'adh himself took clothes instead of grain for the benefit of the poor.