Waqfcoin: an innovative idea to develop the custom of waqf

10 Nov. 2019

MSTF Media reports:

In the second STEP talk in Imam Sadiq University during the 6th STEP on November 10, which was about financing science and technology in Islamic countries especially through waqf, Aishath Muneeza talked about her innovative idea of waqfcoin. Firs, she explained the necessity of transparency in all dealings in order to increase the confidence in society, persuade more contributors to join, and have sustainable cash and waqf funds established all over the world. She told that the current situation is a result of a lack of belief and trust in different parties. Then she went on to talk about waqfcoin in Islamic social market. She maintained that if this type of waqf is regulated, we will be able to see products and issues in which waqfcoin is used. Moreover, in case waqfcoin is blockchain-based, we can determine whether a company's product is exactly based on waqfcoin and consequently the contributor will be aware of the place where the waqfcoin is spent. She further added that another area which needs to be developed parallel to the principle of waqfcoin is social return. To answer the question about how to quantify social return, she told that if you are investing waqfcoin you do not expect an economic return, but it is only social return that you expect. Therefore, a precise index needs to be developed for social return to ensure that the social development using specific waqfcoin is properly measured. She added that if we can develop the concept of waqfcoin, we will have sustainable waqfcoins in different developing parts of the world. Moreover, if it is regulated as she mentioned before, since the capital market laws become unified and strengthen almost all the jurisdictions of the world, proper governing mechanisms will be followed and finally we will be able to achieve everything we want to in Muslim world by using good financing sources. She referred to Mustafa  Foundation as one of the examples but believed that the problem and question of how to maintain the funds received or how to attract more funds to this foundation still exists. In her idea, by the concept of waqfcoin in the Islamic social capital market we can have sustainable evergreen waqf funds in different parts of the world. She further added that waqf is a separate Islamic social instrument which can be combined with normal black and white commercial sale contracts that are made. To response the question regarding the most important challenge to waqf, she said that governing is the biggest challenge. There should be trust and confidence in the person who is managing the waqf fund. People do not want to invest their money in different social projects handled by different managers because they do not believe in them. She said that we can instead have a uniform standard which can be applied to waqf.