Officials working with Donald Trump’s “Board of Peace” are exploring the launch of a US dollar backed stablecoin for Gaza as part of plans to rebuild the enclave’s war damaged economy, according to a Financial Times report.

The proposal remains preliminary and would not create a new Palestinian currency. Instead, it would function as a digital payments mechanism in a region where banking infrastructure has been severely disrupted and access to physical Israeli shekels has been constrained since the 2023 war.

The effort is reportedly being led by Israeli tech entrepreneur Liran Tancman, now an adviser to the US led body overseeing reconstruction.

Officials from Gaza’s technocratic administration are also involved. The stablecoin would be pegged to the US dollar, with Gulf Arab and Palestinian digital asset firms potentially supporting implementation.

Supporters argue that expanding digital payments could reduce reliance on scarce physical cash and limit revenue channels for Hamas. Critics warn that a Gaza-focused stablecoin could further separate the enclave’s economy from the West Bank and raise governance concerns, particularly given Gaza’s power outages and reliance on 2G networks.