ISLAMIC CRYPTOCURRENCIES AND THE FUTURE OF WAQF MANAGEMENT: A STRATEGIC VISION FOR GLOBAL ASSET TOKENIZATION
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October 20, 2025
April 29, 2026
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Blockchain Technology, Islamic Cryptocurrencies, Waqf Management
Abstract
Rapid advancements in financial technology have introduced blockchain and cryptocurrencies as transformative instruments in global finance, prompting critical reflection within Islamic economic systems. Waqf institutions, historically central to socio-economic development, continue to face structural inefficiencies, limited transparency, and underutilized assets, raising concerns regarding their sustainability in contemporary contexts. The study aims to examine the potential of Islamic cryptocurrencies as a strategic mechanism for enhancing waqf management through global asset tokenization. Emphasis is placed on aligning technological innovation with Sharia principles to ensure both legitimacy and effectiveness. A qualitative analytical design is employed, integrating an extensive review of scholarly literature, policy documents, and case-based evidence related to Islamic finance, blockchain technology, and waqf governance. The analysis is conducted through thematic coding, conceptual mapping, and comparative evaluation to construct a comprehensive strategic framework. Findings indicate that asset-backed Islamic cryptocurrencies, when combined with tokenization mechanisms, significantly enhance transparency, liquidity, and stakeholder participation in waqf systems. Evidence from emerging case studies demonstrates improved governance efficiency and donor engagement, particularly in regions with strong regulatory support. The study concludes that blockchain-based tokenization represents a viable and transformative pathway for modernizing waqf institutions without compromising their foundational ethical principles. Strategic alignment between technology, regulation, and Sharia compliance emerges as a critical determinant of successful implementation, offering a forward-looking model for sustainable Islamic social finance.
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Copyright (c) 2026 Dallah Dallah, Rachel Chan, Muchamad Bachtiar
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