The administration of President Donald Trump is reportedly exploring the launch of a US dollar-backed stablecoin for Gaza as part of a broader plan to rebuild the territory’s economy, according to a report published Monday by the Financial Times.
The proposal is being discussed with a body referred to as the “Peace Council” and the Gaza Administration Committee, sources familiar with the matter told the newspaper.
The plan remains in its early stages, and officials are not considering the creation of a new Palestinian currency. Instead, the digital stablecoin would function as an electronic payment mechanism amid severe disruption to Gaza’s banking system.
Since the outbreak of war in October 2023, Gaza’s financial infrastructure has been heavily damaged, and access to the Israeli shekel has declined significantly.
The proposed digital currency would be pegged to the US dollar and designed to facilitate transactions in an environment where traditional banking services and payment systems have largely collapsed.
According to the Financial Times, regulatory oversight and the operational framework of the stablecoin would be determined by the Peace Council and the Gaza Administration Committee. The initiative is part of a broader vision for Gaza’s post-war recovery, as the territory faces economic devastation after nearly two years of conflict.
The report said Israeli entrepreneur Liran Tankman, an adviser to the US-led body overseeing Gaza’s reconstruction efforts, is leading the project. Officials from the Gaza Administration Committee are also reportedly involved, and digital asset companies are expected to provide technical and financial backing.
If implemented, the plan could mark a significant shift in how financial services operate in Gaza, introducing blockchain-based payment systems as part of a wider reconstruction strategy. However, key details, including governance, regulatory compliance, and international coordination, have yet to be finalized.
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