BLOCKCHAIN-BASED WAQF BANKING MODEL FOR ENHANCING FINANCIAL INCLUSION AMONG MUSLIM MICRO-ENTREPRENEURS
DOI:
https://doi.org/10.59623/ndehz351Keywords:
Blockchain, Waqf Banking, Financial Inclusion, Islamic Finance, Micro-EntrepreneursAbstract
Despite decades of discourse on Islamic social finance, a critical gap persists at the intersection of blockchain technology, waqf governance, and financial inclusion for Muslim micro-entrepreneurs in developing economies. This study proposes and empirically validates a Blockchain-Based Waqf Banking (BBWB) model designed to overcome systemic barriers of trust deficit, information asymmetry, and Shariah non-compliance that continue to exclude Muslim micro-entrepreneurs from formal financial systems. Employing a mixed-methods approach with 287 respondents across Indonesia, Malaysia, and Bangladesh supplemented by Delphi expert consensus and structural equation modelling using Partial Least Squares (SEM-PLS) the study identifies four core constructs: Blockchain Transparency, Waqf Fund Accessibility, Smart Contract Efficiency, and Shariah Compliance Assurance as significant determinants of Financial Inclusion Outcomes. Micro-Entrepreneur Trust emerged as a significant mediator, while Shariah Compliance Assurance significantly moderates the relationship between Waqf Fund Accessibility and Financial Inclusion. The proposed model integrates permissioned blockchain architecture with productive waqf principles and interest-free (qard hasan) micro-financing, constituting a theoretically grounded and empirically supported innovation that advances both Islamic finance literature and inclusive development policy. Findings contribute directly to Sustainable Development Goal 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).
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