U.S. President Donald Trump’s ‘Board of Peace’ is developing a stablecoin backed by the US dollar to help Gaza’s faltering economy.
The project is said to be still in the nascent stage, but it aims to let the people of Gaza make digital payments online without relying on cash or the traditional banking system, which has been badly disrupted by the war.
According to a report in the Financial Times, this will not be a “Gaza Coin” or a new Palestinian currency, but a means to allow Gazans to transact digitally. The initiative will rely on companies in the Gulf region and Palestine that have experience in digital currencies to help build the system.
Liran Tancman, an Israeli tech worker will lead the project. Liran now serves as an adviser to the Board of Peace. The 14-member National Committee for the Administration of Gaza (NCAG), the office of the High Representative, which is headed by former UN ambassador Nickolay Mladenov and members of Gaza’s new technocratic government are also involved.
Reports state that the stablecoin would not take the place of the Israeli shekel and would instead be pegged to the US dollar. It would primarily support e-payment and shopping in places where cash is scarce.
People supporting this move say that stablecoins can reduce the need for physical cash and limit funding channels for Hamas, which controls Gaza.
However, some have criticized this, saying that it may separate the country from the West Bank and may be hard to control because of Gaza’s weak electricity and slow internet.
The project is part of the Board of Peace’s broader plan to rebuild Gaza. Member countries have given more than $7 billion for relief, while the UN has added $2 billion, and FIFA will provide $75 million for sports programs.
The plan also includes disarming Hamas, establishing a new Palestinian police force and setting up an International Stabilization Force with Israel and Egypt to protect borders and maintain peace. The 2023 conflict left over 72,000 people dead and destroyed much of Gaza’s infrastructure.
Gaza’s economy has been destroyed after the conflict, leaving the country in disaster as most buildings and roads are in ruins, and banks are unable to work properly. As a result, people struggle to get cash, buy basic goods, and pay for services.
The idea behind the stablecoin is to give people a way to make payments online. At the same time, it may help stop Hamas from getting funds or sponsors who finance the war and bring outside support into the region.
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