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February 24, 2026
Officials affiliated with former President Donald Trump's "Board of Peace" are examining the potential introduction of a U.S. dollar-pegged stablecoin in Gaza as part of postwar economic revitalization efforts.
The initiative seeks to facilitate digital transactions, diminish reliance on physical currency, and mitigate financial support to militant organizations such as Hamas.
However, analysts have raised concerns regarding possible economic divergence from the West Bank.
Key Takeaways
- Objective of the Stablecoin: A U.S. dollar-linked digital asset designed for secure transactions in postwar Gaza, distinct from a national currency.
- Advisory Leadership: Guided by Liran Tancman, incorporating expertise from Gulf and Palestinian digital currency specialists.
- Anticipated Advantages: Decreases cash dependency, potentially restricting illicit funding to groups like Hamas, while enabling digital services in finance, education, and health.
- Potential Drawbacks: Heightened economic separation from the West Bank, alongside pending regulatory and integration challenges.
- Framework of the Board: Trump's initiative requiring $1 billion per member nation, with a $10 billion U.S. pledge for Gaza's rebuilding.
This development comes amid ongoing reconstruction in Gaza, following the protracted conflict initiated by Hamas's October 2023 assault on Israel.
With conventional banking infrastructure severely compromised, proponents suggest that a stablecoin could establish a robust digital framework for payments, financial inclusion, education, and healthcare services.
Sources indicate that the proposed stablecoin would function as a transactional tool anchored to the U.S. dollar, rather than a sovereign Palestinian currency or a bespoke "Gaza Coin."
The project draws on technical insights from Gulf Arab and Palestinian firms specializing in digital assets, aiming to accelerate economic recovery in the region.
The effort is being advised by Liran Tancman, an Israeli technology executive and co-founder of the Israeli Cyber Command, who serves pro bono on the Board. During a recent convening in Washington, Tancman presented a blueprint for an "open platform supporting electronic payments, financial services, e-learning, and healthcare, with emphasis on user data sovereignty."
Established in January 2026 by Trump, the Board mandates a $1 billion commitment from participating nations for full membership, with the United States allocating $10 billion.
Advocates contend that transitioning to digital payments could enhance transparency and curb cash-based channels historically associated with funding extremist activities, including Hamas.
Nevertheless, the proposal faces scrutiny. Detractors highlight the risk of deepening economic schisms between Gaza and the West Bank, where disparate financial systems operate.
Key elements such as regulatory oversight, access protocols, and interoperability with existing Palestinian banking networks remain unresolved, pending deliberations by the Board and the National Council for Arab Gaza (NCAG).
The discussions remain exploratory, with no established rollout schedule. This reflects the Trump administration's strategy of integrating technological solutions into Middle East diplomacy and reconstruction.
Conclusion
The Board of Peace's stablecoin proposal underscores a forward-thinking approach to Gaza's economic rehabilitation, favoring digital innovation to foster stability and accountability.
Success will hinge on mitigating fragmentation risks and ensuring equitable deployment.
As the plan progresses, it may influence how digital currencies are applied in post-conflict settings globally.
Read Next:
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- Mastercard Stablecoin Pay In 2026
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FAQs:
1. What is the proposed stablecoin under Trump's Board of Peace for Gaza?
A U.S. dollar-pegged digital currency intended to support electronic transactions in Gaza, aiding reconstruction without establishing a new national tender.
2. How could the stablecoin reduce funding to Hamas?
By promoting digital payments over cash, it aims to increase transaction visibility and limit avenues for supporting militant entities.
3. What concerns arise regarding economic fragmentation with the West Bank?
Implementing a unique digital system in Gaza may widen economic disparities, hindering unified Palestinian financial cohesion.
4. Who is advising on the stablecoin project?
Liran Tancman, an Israeli tech leader, with contributions from Gulf and Palestinian digital finance experts.
5. What is the timeline for the stablecoin's rollout in Gaza?
The initiative is in early stages, with no confirmed implementation date; regulatory frameworks are under review.
Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
