As part of a forward-looking initiative amid Gaza’s postwar reconstruction, senior advisers to President Donald Trump’s Board of Peace are quietly discussing the launch of a US dollar-pegged stablecoin tailored for the Gaza Strip. According to reports emerging recently, the proposal remains in its earliest stages but represents a potentially use of cryptocurrency technology to address the enclave’s collapsed financial infrastructure.
Gaza’s economy has been devastated by nearly two years of intense conflict that began in late 2023. Traditional banking operations have ground to a halt, physical cash—primarily Israeli shekels—has become extremely scarce due to restrictions on inflows, and residents face severe limitations on everyday transactions.
With power outages frequent and telecommunications restricted largely to unreliable 2G networks, rebuilding a functional payment system poses immense challenges.
Proponents of the stablecoin see it as a practical bridge to restore economic activity without introducing a new sovereign currency.
The initiative would create a digital asset fully backed by and redeemable for the US dollar, functioning primarily as a tool for secure, efficient digital payments.
Officials have stressed that it is explicitly not intended to become a “Gaza Coin” or replace the Palestinian monetary framework.
Instead, it aims to enable everyday commerce, humanitarian aid distribution, and broader financial services in an environment where cash is unreliable and traditional banks struggle to operate.
Supporters argue this approach could enhance transparency, curb illicit cash flows potentially linked to militant groups, and accelerate reconstruction by integrating Gaza into modern digital finance.
Leading the exploratory work is Liran Tancman, an Israeli technology entrepreneur and former intelligence reservist who now serves as an unpaid adviser to the Board of Peace.
Tancman has collaborated closely with Gaza’s interim technocratic administration, known as the National Committee for the Administration of Gaza (NCAG).
Discussions also envision involvement from cryptocurrency specialists based in Gulf Arab states and among Palestinian firms with relevant expertise.
The Board of Peace and NCAG would jointly establish any regulatory framework, access rules, and oversight mechanisms, though no final decisions have been made.
The Board of Peace itself, chaired by President Trump, was established earlier this year as a US-led international body tasked with overseeing Gaza’s transition from ceasefire to long-term development.
It includes prominent figures such as Secretary of State Marco Rubio, special envoy Steve Witkoff, former UK Prime Minister Tony Blair, and World Bank President Ajay Banga, among others drawn from Gulf nations and select allies.
During its inaugural meeting in Washington last week, the board highlighted ambitious plans for a “secure digital backbone” supporting e-payments, financial inclusion, e-learning, healthcare services, and user-controlled data systems.
While the concept has sparked optimism about innovative reconstruction methods, it has also drawn scrutiny.
Critics question whether Gaza’s fragile infrastructure—marked by limited internet access and electricity shortages—can reliably support widespread stablecoin adoption.
There are also concerns that a Gaza-specific digital currency could inadvertently deepen economic divisions between the enclave and the West Bank, or raise questions about external governance and data privacy.
As part of broader reconstruction pledges, including a reported $10 billion US commitment alongside billions more from international partners, the stablecoin idea aligns with efforts to foster a transparent, corruption-resistant economy.
Tancman has spoken of upgrading connectivity to high-speed internet for essential services by mid-2027 and developing streamlined logistics platforms to stimulate business and trade.
Though details are still fluid and implementation faces significant technical and political hurdles, the proposal underscores a growing recognition that responsible digital innovation may play a central role in stabilizing conflict-affected regions.
If advanced, the dollar stablecoin could mark one of the first large-scale deployments of blockchain-based payments in a postwar humanitarian context, offering a model for future global recovery efforts.