Key Highlights
- Trump’s Board of Peace is planning a US dollar–backed stablecoin to help Gazans make digital payments.
- The project is led by Israeli tech adviser Liran Tancman and involves Gaza’s new technocratic government.
- The stablecoin aims to rebuild Gaza’s economy while limiting cash flow to Hamas.
U.S. President Donald Trump’s “Board of Peace” is reportedly working on a U.S. dollar-backed stablecoin to support Gaza’s struggling economy.
The project is said to be still new and in its early stages, but its goal is to let the people of Gaza make digital payments online without relying on cash or the traditional banking system, which has been badly disrupted by the war.
“This will not be a ‘Gaza Coin’ or a new Palestinian currency, but a means to allow Gazans to transact digitally,” a source familiar with the discussions told the Financial Times. The initiative would rely on Gulf Arab and Palestinian companies with experience in digital currencies to help build the system.
Officials in charge of the project
The stablecoin project will be led by Liran Tancman, an Israeli tech worker, who now serves as an adviser to the Board of Peace. Members of Gaza’s new technocratic government, the 14-member National Committee for the Administration of Gaza (NCAG), and the office of the High Representative, led by former UN envoy Nickolay Mladenov, are also involved.
According to reports, the stablecoin would be pegged to the U.S. dollar and would not replace the Israeli shekel. It would mainly support e-payment and shopping in places where cash is hard to get.
Those who support this move say that stablecoins can reduce the need for physical cash and limit funding channels for Hamas, which controls Gaza. However, some have criticized this, saying that it may separate the country from the West Bank and may be hard to control because of Gaza’s weak electricity and slow internet.
Trump’s plan to help rebuild Gaza
The project is part of the Board of Peace’s broader plan to rebuild Gaza. Member countries have given more than $7 billion for relief, while the UN added $2 billion, and FIFA will provide $75 million for sports programs.
The plan also includes disarming Hamas, establishing a new Palestinian police force, and setting up an International Stabilization Force with Israel and Egypt to protect borders and keep peace. The 2023 conflict left over 72,000 people dead and destroyed much of Gaza’s infrastructure.
Trump and the Board of Peace are reportedly retaining control over the stablecoin project, including veto power over leadership decisions, even after leaving office.
Broader context
Gaza’s economy has been destroyed after the conflict, leaving the country in disaster as most buildings and roads are in ruins, and banks are unable to work properly. As a result, people struggle to get cash, buy basic goods, and pay for services.
The idea behind the stablecoin is to give people a way to make payments online. At the same time, it may help stop Hamas from getting funds or sponsors who finance the war and bring outside support into the region.
Also Read: WLFI Faces Attack on Its Stablecoin: Is USD1 Going to Depeg?
