A Trump-chaired initiative is exploring a dollar-pegged stablecoin to facilitate digital transactions in Gaza, according to the Financial Times, citing five people familiar with the discussions. The proposal would introduce blockchain-based payments into a territory where access to physical cash has largely collapsed.
The effort is being examined under the so-called Board of Peace, a coalition launched last month to support Middle East reconstruction efforts. The group, chaired by Donald Trump and led in part by Jared Kushner, held its first meeting in Washington, D.C., last week, where Israeli tech entrepreneur Liran Tancman outlined plans for a “secure digital backbone” supporting e-payments, financial services, e-learning, and healthcare.
Can A Stablecoin Function In A Conflict Zone?
Gaza’s banking infrastructure has been severely disrupted amid the ongoing war between Israel and Hamas. The Financial Times reported that cash machines have been destroyed or closed and new currency deliveries blocked, pushing residents toward digital alternatives. One source described the stablecoin as a “means to allow Gazans to transact digitally” despite the breakdown of conventional financial rails.
The initiative would sit at the intersection of geopolitics and crypto policy. President Trump signed the first federal stablecoin bill into law over the summer and is also linked to World Liberty Financial, which issued the USD1 stablecoin. Lawmakers have raised concerns about national security and potential conflicts of interest as broader digital asset regulation continues to be debated in Washington.
Membership in the Board of Peace is by invitation and carries a reported $1 billion fee, underscoring the scale of the reconstruction ambitions. Yet details around governance, custody of reserves, and regulatory jurisdiction for any Gaza-focused stablecoin remain unclear, and the White House did not immediately respond to requests for comment.
Stablecoins are often pitched as financial lifelines in fragile economies, but deployment in an active conflict zone introduces operational and political risks. The next signal to watch will be whether formal documentation or pilot frameworks emerge outlining reserve management and compliance oversight for the proposed token.
