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Articles

Vol. 1 No. 9 (2026): OKTOBER : MUJAHADAH JURNAL ILMU MULTIDISIPLIN

Cryptocurrency-Based Waqf within the Islamic Finance Ecosystem: A Systematic Literature Review and Conceptual Framework Development

Submitted
October 1, 2026
Published
2026-10-01

Abstract

The development of financial technology and digital assets has driven new forms of innovation within the Islamic finance ecosystem, including the use of cryptocurrency as a waqf instrument. This development creates opportunities to broaden wakif participation, improve transaction efficiency, enhance management transparency, and leverage blockchain technology to strengthen waqf accountability. However, the application of cryptocurrency in waqf continues to face several challenges, particularly regarding its status as property (māl), value volatility, digital security risks, shariah compliance, regulatory frameworks, and the capacity of nazhir to manage digital assets. This study aims to examine the development of the literature on cryptocurrency-based waqf, identify the opportunities and challenges associated with its implementation within the Islamic finance ecosystem, and develop a conceptual framework integrating shariah, technological, regulatory, governance, and risk-management dimensions. The study adopts a qualitative approach using a Systematic Literature Review (SLR) based on the principles of Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA). Relevant literature is analyzed descriptively and thematically to identify patterns in the existing literature, research gaps, and relationships among concepts related to cryptocurrency, blockchain, waqf, and Islamic finance. The findings indicate that cryptocurrency has the potential to support waqf innovation, particularly through blockchain and smart contracts, which may enhance transparency, traceability, and the efficiency of waqf fund or asset management. At the same time, price volatility, uncertainty regarding its legal and shariah status, cybersecurity risks, smart contract errors, and the lack of optimal regulatory harmonization remain major challenges. This study develops a conceptual framework that positions cryptocurrency characteristics, shariah compliance and maqāṣid al-sharī‘ah, waqf asset suitability, blockchain technology, nazhir governance, regulation, and risk management as interconnected elements supporting transparency, accountability, and the sustainability of waqf benefits. Accordingly, the use of cryptocurrency in waqf requires an integrated approach that extends beyond technological considerations to encompass shariah, legal, institutional, and economic sustainability dimensions.

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