Officials advising President Donald Trump’s US‐led “Board of Peace” are examining whether a dollar‐backed stablecoin could play a role in rebuilding Gaza’s shattered economy.
Gaza Stablecoin Plans
The idea, first reported by the Financial Times, is still in its early stages. Five individuals briefed on the talks said conversations about introducing a stablecoin remain preliminary, and key details have yet to be finalized.
Even so, the concept is being considered as part of a broader plan to revive economic life in the Palestinian enclave after two years of war between Israel and Hamas that left much of Gaza’s financial system crippled.
One person familiar with the project said the proposed stablecoin would be pegged to the US dollar and would likely involve Gulf Arab and Palestinian companies experienced in digital currency infrastructure.
According to the report, the Board of Peace and the 14‐member National Committee for the Administration of Gaza (NCAG) would ultimately determine the regulatory framework and access rules governing any stablecoin system, though “nothing definitive” has been agreed upon.
Potential Benefits And Risks
Supporters of the Gaza stablecoin initiative argue that reducing reliance on physical cash could limit the ability of Hamas to generate revenue. Another individual familiar with the talks described the goal as an effort to “dry Gaza from cash so Hamas can’t generate any.”
Advocates also contend that expanding digital payments would allow commerce to continue without being overly dependent on Israeli authorities’ control over currency flows into the territory.
However, others involved in the discussions have voiced concerns that a Gaza‐specific digital system could inadvertently deepen the economic divide between Gaza and the West Bank.
“It will be much more difficult to maintain economic links between Gaza and the West Bank if they have no means of easy payment between the two,” one person familiar with the talks said. “Gaza would be almost like a self‐contained economy. That would be a concern.” For now, the stablecoin proposal remains an exploratory concept.
Featured image from OpenArt, chart from TradingView.com
