Key Points
- Preliminary conversations are underway regarding a dollar-backed stablecoin initiative for Gaza
- The digital currency aims to facilitate electronic transactions rather than supplanting traditional money
- Israeli technology executive Liran Tancman spearheads the initiative with the National Committee for the Administration of Gaza
- Gaza faces a critical cash shortage following ATM destruction and halted currency shipments
- The GENIUS Act, America’s inaugural federal stablecoin legislation, received Trump’s signature in July 2025
According to a Financial Times investigation citing five individuals briefed on the matter, Trump’s Board of Peace is exploring preliminary discussions about launching a dollar-pegged stablecoin specifically for Gaza.
The proposed digital asset would provide Gaza residents with electronic transaction capabilities. Developers emphasize it’s designed as a practical payment tool, not a speculative token or fiat currency substitute.
President Donald Trump established the Board of Peace in January 2026 as an independent organization operating beyond United Nations jurisdiction. Entry requires a $1 billion financial commitment from participating nations.
Twenty-six nations signed on as charter members, encompassing Israel, Saudi Arabia, Hungary, and El Salvador. Notably, most Western European nations rejected their invitations to participate.
The United States committed $10 billion to the endeavor. Trump serves as chairman, while his son-in-law Jared Kushner holds a leadership position.
During last week’s inaugural meeting in Washington D.C., Israeli tech entrepreneur Liran Tancman presented plans for establishing a “secure digital backbone” encompassing payment systems, financial services, educational technology, and medical care.
Gaza’s Cash Crisis Drives Digital Payment Demand
Cash availability throughout Gaza has deteriorated dramatically. Banking machines have been demolished or deactivated, while Israel continues blocking fresh currency shipments, the FT reports.
This crisis has forced inhabitants toward electronic payment methods by necessity. The stablecoin initiative represents a direct response to these ground-level conditions.
Tancman collaborates with the National Committee for the Administration of Gaza on the stablecoin development. The project has yet to identify an issuing organization.
Snir Levi, who heads blockchain intelligence firm Nominis, told Cointelegraph the proposal remains in nascent stages. He noted that over-the-counter trading desks operating in Gaza have already processed more than $100 million in stablecoin transactions despite minimal regulatory infrastructure.
Trump’s Expanding Cryptocurrency Footprint
In July 2025, Trump enacted the GENIUS Act, marking the nation’s first comprehensive federal stablecoin legislation. His engagement with cryptocurrency markets has expanded considerably.
Through his family’s involvement in crypto venture World Liberty Financial, Trump participated in launching the USD1 stablecoin. Multiple legislators have voiced concerns regarding potential conflicts of interest amid ongoing crypto regulatory debates in the capital.
Reports suggest Trump has also contemplated a scheme to tokenize territory in postwar Gaza. This concept would utilize blockchain-based tokens to facilitate resident relocation and housing reconstruction during a possible American occupation.
In February 2025, Trump publicly stated America should “take over” Gaza, transforming it into the “Riviera of the Middle East.” While a ceasefire officially commenced in October 2025, Israeli military forces have allegedly breached the agreement repeatedly.
The White House declined to comment on the stablecoin proposal when contacted.
