Trump-led Board of Peace considers a dollar-pegged stablecoin for Gaza to enable safe digital transactions and address cash shortages.
President Donald Trump’s Board of Peace is exploring a dollar-pegged stablecoin for Gaza to enable secure digital transactions. According to Financial Times, the initiative is part of a wider plan to reconstruct Gaza and facilitate financial accessibility for the residents dealing with a lack of cash on a regular basis.
Stablecoin Initiative Aims to Facilitate Safe Digital Transactions
The stablecoin is planned to be a financial tool instead of a new currency of Gaza. It would enable Gazans to deal digitally and securely. Liran Tancman is an Israeli tech entrepreneur and is said to lead the project and advise the Board of Peace. The initiative is looking for collaboration with Gulf Arab and Palestinian digital currency companies.
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🇺🇸 Trump’s "Board of Peace" explores US-backed stablecoin to rebuild Gaza's economy and bypass Hamas. pic.twitter.com/3w3gSOqcu4
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Coordination is also provided by the National Committee for the Administration of Gaza (NCAG) and the Office of the High Representative, headed up by Nickolay Mladenov. Discussions are still at an early stage and there are still regulatory and technical issues to be worked out. The aim of the project is to create functional access to financial services in the face of shortages of local cash.
Broader “New Gaza” Reconstruction Plan
The stablecoin is part of the “New Gaza” plan, announced at the first-ever meeting of the board on February 19, 2026. President Trump pledged $10 billion from the U.S. government for the Gaza reconstruction plan. Member nations including Saudi Arabia, the UAE, Qatar, Bahrain, Morocco, Azerbaijan, and Kazakhstan contributed $7 billion. The funding supports rebuilding projects and the development of Gaza’s infrastructure. The plan involves building 100,000 homes and also developing Gaza’s coastline into a “Mediterranean Riviera.”
Despite the optimism, the initiative is not without challenges. Chronic power outages and poor 2G network connectivity in Gaza could be a barrier preventing the digitization of payment. Legal experts also point out that U.S. funding has not yet been fully authorized by the U.S. Congress and could cause a delay in implementation.
The stablecoin could modernize Gaza’s economy and, moreover, support large infrastructure projects. Officials emphasize that it serves only as a transaction tool, so it avoids political risks.
With the help of international partners and tech companies, the Board of Peace is trying to show how digital financial solutions can help improve economic resilience. Early engagement with stakeholders is expected to develop regulatory frameworks and technical standards for the project.
The Board of Peace is still considering possible solutions for secure digital payments during the reconstruction and development plans. The initiative is part of a growing trend around the world of using stablecoins to facilitate local economies in regions where there isn’t a sufficient banking infrastructure.
This work is a first in demonstrating an attempt to incorporate a stablecoin into a humanitarian and reconstruction setting, and has implications for Gaza and broader digital currency policy debates.