Officials advising Donald Trump’s “Board of Peace” are exploring a US dollar-backed stablecoin for Gazaaccording to reports from the Financial Times. The proposal remains in early stages.
Howeverit signals a potential shift toward using crypto as core infrastructure in Gaza’s post-war economic reconstruction.
Turning Gaza Into a Crypto Project?
According to the Financial Timesthe stablecoin would be pegged to the US dollar and used to facilitate digital paymentsnot replace Gaza with a sovereign currency.
Governance would involve the Board of Peace and Gaza’s interim technocratic administration.
The discussions come as Gaza’s banking system remains severely impaired. Cash access has been restricted since 2023 due to ATM destruction and limits on physical currency deliveries.
As a resultdigital payments have become more commonthough connectivity and financial infrastructure remain fragile.
Board of Peace Takes Central Role in Gaza Transition
The Board of Peace sits at the center of Trump’s broader 20-point plan for Gaza. Trump chairs the body. Its members include senior US officials such as Secretary of State Marco Rubio and envoy Steve Witkoffalongside international figures like former UK Prime Minister Tony Blair and World Bank President Ajay Banga.
The board oversees Gaza’s transitional governancereconstruction planningand economic recovery. It also coordinates with a Palestinian technocratic committee tasked with restoring services and managing daily administration.
Meanwhilean international stabilization force is expected to handle security and policing during the transition period.
Within this frameworkthe stablecoin proposal reflects a broader effort to rebuild Gaza’s financial system without relying on traditional banking infrastructure.
Promise of Financial AccessBut Ethical Risks of Control
In theorya stablecoin could help restore economic activity. Digital dollars could enable aid deliverysalariesand daily transactions even without functioning banks. This could potentially improve transparency and reduce corruption in aid distribution.
Howeverthe plan raises serious ethical and political concerns. A digitally controlled currency governed by an international body could give external actors unprecedented influence over Gaza’s financial system. Every transaction could be tracked.
Access could potentially be restricted or revoked.
Moreoverintroducing a separate payment system risks further separating Gaza economically from the West Bank. Infrastructure limitsincluding Gaza’s reliance on slow 2G networkscould also hinder adoption.
For nowthe stablecoin remains only a proposal.
Howeverif implementedit would represent one of the first attempts to rebuild a post-conflict economy using digital dollar infrastructure — a move that could reshape both Gaza’s future and the global role of stablecoins.
