The Empowerment of Digital Cash Waqf as a Strategy for Community Economic Development in the Era of Digital Transformation

Abstract

Digital transformation has reshaped many aspects of life, including the governance of Islamic philanthropy. Cash waqf is a key Islamic economic instrument with considerable potential to support the economic development of the ummah, yet its utilization remains limited. This article examines the concept of digital-based cash waqf empowerment and its strategic significance for community economic development in the digital era. Using a descriptive-analytical literature review of primary and secondary sources—covering waqf fiqh, regulatory frameworks, and digital economy scholarship—this study finds that digitalization can improve accessibility, transparency, accountability, and public participation in cash waqf. Digital platforms may also strengthen cash waqf’s role as a sustainable source of productive social financing. Supported by professional governance and robust regulation, digital-based cash waqf is well-positioned to become a strategic instrument for advancing the economic development of the ummah.