Trump Board Of Peace Explores Stablecoins For Gaza Reconstruction: FT

The initiative highlights how international bodies are evaluating digital assets as potential macroeconomic infrastructure in areas where traditional banking systems have broken down.

Replacing the physical shekel

Since the outbreak of the conflict, Gaza's access to physical cash has been severely constrained. The local economy traditionally relies on the Israeli shekel, but the physical currency has become exceptionally scarce. According to the Financial Times, Israel stopped allowing cash to enter the Strip early in the war to curtail the financial operations of Hamas, while many wealthy families withdrew their funds and left the territory.

Consequently, the remaining banks and financial institutions face significant operational challenges, and individuals who still have access to shekels are reportedly charging steep fees for their use. The stablecoin proposal aims to bypass these hurdles by allowing residents to transact digitally.

The project is reportedly being spearheaded by Liran Tancman, an Israeli technology entrepreneur and unpaid adviser to the Board of Peace. The Financial Times notes that Tancman is collaborating with the National Committee for the Administration of Gaza, a Palestinian technocratic body, alongside the office of Nickolay Mladenov, the former UN official serving as the board's high representative.

Not a sovereign currency

Proponents are framing the initiative strictly as a payment system rather than the creation of a new national currency. A source familiar with the project told the Financial Times that the token will not function as a Gaza Coin or a new Palestinian currency, but simply as a means to facilitate daily digital transactions.

The report also highlighted a secondary motivation: to actively reduce the reliance on physical cash in Gaza, which could theoretically make it more difficult for Hamas to generate revenue.

The practical implementation of a stablecoin in the territory faces obvious logistical hurdles. Gaza suffers from an unreliable power supply and limited internet connectivity, with Israel currently only allowing slower 2G cellular service.

However, the Financial Times reports that Tancman recently assured the board that the network will be upgraded to provide free, high-speed access by July. If the necessary infrastructure can be established, it would mark a significant attempt to deploy a stablecoin as foundational financial plumbing in a post-conflict environment.