Officials connected to U.S. President Donald Trump’s Board of Peace are examining the possibility of introducing a U.S. dollar-backed stablecoin in Gaza, according to multiple sources, including an article in the Financial Times. The initiative is still in its earliest stages and would not replace existing Palestinian currency, but instead aim to facilitate digital transactions for Gazans in a region where traditional banking infrastructure has been severely damaged.

Restoring Financial Normalcy in a War-Torn Region

The stablecoin would be pegged to the U.S. dollar to maintain stable value, enabling payments for aid distribution, salaries, and daily goods and services without relying on scarce physical cash. The idea is being led by Liran Tancman, an Israeli tech entrepreneur and former reservist, who serves as an unpaid adviser to the Board.

Discussions are underway to involve Palestinian and Gulf Arab companies with expertise in digital currencies to assist in implementation. The Board of Peace, along with any transitional administration in Gaza, would likely determine the regulatory framework, access controls, and implementation details, though nothing is finalized yet.

According to the Financial Times, the proposal is part of the Board’s broader efforts to rebuild Gaza’s economy after years of war. The Board was formalized in early 2026 following UN Security Council endorsement, with Trump pledging $10 billion in U.S. funding and requiring member countries to contribute $1 billion each for participation.

Geopolitical and Practical Concerns

Some view the stablecoin as a pragmatic way to restore financial normalcy and potentially reduce reliance on unregulated cash flows, which could limit channels for groups like Hamas. However, others have raised concerns about surveillance, control over transactions, limited internet infrastructure in Gaza, and broader geopolitical implications.

Similar ideas have been discussed in past Trump-related postwar Gaza planning, including digital tokens for relocation or development incentives. This stablecoin concept, however, is distinct in its focus on payments rather than land or incentives.

The Board of Peace, chaired by Trump, held its inaugural meeting on February 19, 2026, in Washington, D.C., at the renamed Donald J. Trump United States Institute of Peace. It serves as an international body with a broader potential mandate beyond Gaza, overseeing reconstruction, mobilizing funds, and ensuring accountability until the Palestinian Authority can assume control after reforms.

Rebuilding Gaza: A Multinational Effort

Trump pledged $10 billion from the U.S. toward the Board and Gaza efforts, while over 40 nations, including Gulf states like the UAE, Qatar, Saudi Arabia, and others such as Kazakhstan, Azerbaijan, Morocco, and Bahrain, have committed at least $7 billion as an initial down payment for reconstruction and relief.

This is a fraction of the total estimated needs. The World Bank projects $50-53 billion will be required, with some sources citing up to $70 billion due to extensive war damage. A National Committee for the Administration of Gaza (NCAG), comprising 15 Palestinian technocrats, handles the restoration of public services, civil institutions, and daily stabilization.

The plans build on a 2025 ceasefire and hostage deal and aim for a “deradicalized, terror-free” Gaza with prosperity. Trump has touted the initiative as a path to lasting peace, with some nominating him for the 2026 Nobel Peace Prize. However, skepticism remains, as many Western allies have been wary or declined full involvement, fearing it rivals the UN or lacks Palestinian input.

Critics describe the plan as top-down and real-estate focused, potentially fragmenting Gaza or sidelining political aspirations for statehood. Implementation faces hurdles such as ongoing security issues, massive funding gaps, infrastructure collapse, and debates over control and surveillance in any digital systems.

Despite these challenges, the Board of Peace continues to advance its vision for Gaza, including proposals to build 100,000 housing units for approximately 500,000 residents, $5 billion in initial infrastructure, and transforming Gaza into an economic and investment hub.