USD stablecoin plan advances as Trump panel weighs Gaza

Gaza stablecoin plan: a US dollar-pegged Gaza digital payments layer

Officials working with United States President Donald Trump’s Board of Peace are considering a US dollar–backed stablecoin to help revive Gaza’s economy, as reported by Breaking the News. The proposal is characterized as a digital payments layer that could operate alongside existing money.

Gaza’s new technocratic government is trying to position a stablecoin to reduce the use of physical cash amid worsening cash shortages, according to Stocktwits News. That objective reflects the broader need to keep commerce and aid flowing despite damaged banking infrastructure.

Why Trump Board of Peace backs Gaza digital payments with stablecoin

The plan’s policy intent includes enabling Gaza digital payments without creating a new sovereign currency and constricting cash-based illicit finance, as reported by the Financial Times. Proponents argue a dollar peg could stabilize pricing and streamline disbursements under tight oversight.

The Board of Peace requires a $1 billion contribution for membership, signaling the initiative’s funding scale and donor-driven governance, as reported by Cointelegraph. Any stablecoin effort under this umbrella would still need clear rules on issuance, auditing, and accountability.

The scale of disruption is severe: 98% of Gaza’s banking infrastructure has collapsed and only 3 of 94 ATMs remain functional, according to Crypto Valley Journal. That context underscores both the potential utility of a digital instrument and the practical hurdles to using it daily.

Implementing on/off-ramps would require compliant cash-in/out points, reliable power and connectivity, basic devices, and real-time monitoring to meet sanctions and AML expectations. Humanitarian agencies would also need predictable settlement, error resolution, and data safeguards.

Local technologists caution that execution risks are high given power and network constraints. “People tend to see political plans or visions rather than the day-to-day obstacles,” said Mamoun Abu Salah, founder of Gaza Tech Mentorship, at Byline Times.

At the time of this writing, payments-sector sentiment remains fluid; PayPal shares surged as much as 9% on takeover interest, highlighting volatility in digital payments infrastructure, based on data from Investing.com.

Governance, compliance, and inclusion: who runs Gaza’s stablecoin

Issuer, reserves, and transparency: Board of Peace and Palestine Monetary Authority

Key questions remain unresolved: which entity would issue the token, who would regulate it, and where reserves would be custodied and audited. The Board of Peace is the policy catalyst, while any role for the Palestine Monetary Authority has not been detailed. Public reserve attestations and transaction-level disclosures would be necessary to build trust and prevent misuse. Political scientists cited by english.news.cn argue the Board’s limited inclusivity and formal legitimacy could hinder durable governance.

Safeguards, sanctions compliance, and data privacy for Gaza civilians

A gaza stablecoin, if pursued, would require risk-based KYC/AML, sanctions screening, tiered wallet limits, and strong controls on mixers and obfuscation tools. Privacy-by-design and data minimization would be essential so aid recipients are not exposed to undue surveillance. Humanitarian carve-outs and proportionate identity checks could reduce exclusion risk while maintaining oversight. Clear redress processes and transparent rulebooks would help prevent arbitrary freezing or de-banking.

FAQ about Trump Board of Peace

Who would issue and regulate the Gaza stablecoin, how would reserves be safeguarded, and what transparency would be provided?

The project remains exploratory. Issuer and regulator are unannounced; the Board of Peace is exploring it, and any reserves and audit transparency have not been detailed publicly.

Will a Gaza-only digital payments system reduce cash reliance and illicit finance without excluding vulnerable civilians?

It could, if implemented with reliable connectivity, compliant on/off-ramps, inclusive KYC, and privacy safeguards; effectiveness depends on execution so vulnerable civilians are not excluded or de-banked.