Officials working with the Board of Peace began preliminary talks last week in Washington on launching a dollar-backed stablecoin for Gaza. The US-led body, formed under Donald Trump, aims to revive Gaza’s collapsed economy after Israel’s offensive disrupted banking and cash supply. According to people familiar with the discussions, the proposal would enable digital payments while limiting physical cash access.
Board Of Peace Stablecoin Plan Takes Shape
The Board of Peace Stablecoin proposal is on a token pegged to the US dollar as per the FT report. Officials said the asset would not replace Israel’s shekel in Gaza. Instead, it would support digital commerce, healthcare payments, education services, and other essential transactions.
Discussions remain at an early stage. However, planners have outlined a regulatory framework under joint oversight. The Board of Peace would define access and compliance rules. This Board of Peace talks comes at a time when there are tensions between the U.S. and Iran. These tensions are some of the reasons why digital assets are experiencing declines over the past few days.
The 14-member National Committee for the Administration of Gaza, known as NCAG, participates in the talks. In addition, the Office of the High Representative, led by former UN envoy Nickolay Mladenov, works under the same structure. Both bodies coordinate directly with the Board of Peace on rebuilding plans.
Leadership, Funding, and Digital Infrastructure
Israeli tech entrepreneur Liran Tancman leads work on the digital currency concept. He serves as an unpaid adviser to the Board of Peace. At a meeting in Washington last week, he outlined plans for a secure digital backbone in Gaza.
Tancman said the system would support e-payments, financial services, e-learning, and healthcare platforms. He added that users would maintain control over their personal data. However, he did not disclose technical specifications for the proposed token. Elsewhere, China tightened rules on yuan-backed stablecoin issuance.
Officials also expect Gulf Arab and Palestinian firms with digital currency expertise to assist. Billions in reconstruction funding have been pledged by the UAE and other regional actors. Gulf participation could support liquidity and infrastructure rollout.
Cash Shortage, Oversight, and Network Limits
Planners argue that digital transactions could reduce reliance on cash and increase transparency. The approach seeks to restrict Hamas’ ability to generate funds. However, officials stressed that the stablecoin would not create a separate Gaza currency. In the Middle East, there has been stablecoin use. As Coingape reported, Iran’s central bank acquired $507 million in USDT in April and May 2025.
The Palestine Monetary Authority serves as the central bank for Gaza and the West Bank. It cannot issue its own currency, and the shekel remains the formal tender. Some participants raised concerns that a Gaza-focused token could complicate economic ties with the West Bank.
Source: https://coingape.com/trumps-board-of-peace-eyes-dollar-backed-stablecoin-for-gaza-rebuild/
