Key Takeaways
- Preliminary conversations are underway within Trump’s Board of Peace regarding a Gaza-focused, dollar-backed stablecoin
- The digital currency aims to facilitate electronic transactions for Gaza residents, not to supplant traditional money
- Israeli tech founder Liran Tancman spearheads the initiative in collaboration 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 report sourced from five informed individuals, Trump’s Board of Peace has begun preliminary conversations about establishing a dollar-backed stablecoin specifically for Gaza.
The proposed digital currency would enable Gaza’s population to conduct electronic transactions. This initiative is distinct from speculative cryptocurrency projects and isn’t meant to displace conventional monetary systems.
President Donald Trump established the Board of Peace in January 2026. The organization functions independently from the United Nations framework, requiring a $1 billion entry fee for member nations.
Twenty-six nations became charter members, featuring Israel, Saudi Arabia, Hungary, and El Salvador among their ranks. A majority of Western European nations opted against participation.
The United States committed $10 billion toward the program. Leadership includes Trump as chairman, with his son-in-law Jared Kushner playing a significant administrative role.
During the board’s inaugural Washington D.C. gathering last week, Israeli technology entrepreneur Liran Tancman presented proposals for establishing a “secure digital backbone” encompassing payment processing, financial operations, digital education platforms, and medical services.
The Cash Crisis Driving Digital Adoption
Cash availability throughout Gaza has deteriorated dramatically. Banking infrastructure including ATMs has been demolished or decommissioned, while Israel maintains restrictions on fresh currency imports, per the FT reporting.
These circumstances have compelled inhabitants to adopt digital payment methods by necessity. The stablecoin initiative represents a direct response to these ground-level conditions.
Tancman coordinates the stablecoin development alongside the National Committee for the Administration of Gaza. The entity responsible for issuing the currency remains unannounced.
Snir Levi, who serves as CEO of blockchain analytics firm Nominis, informed Cointelegraph that the project remains in nascent stages. He noted that Gaza’s OTC trading desks have already facilitated over $100 million in stablecoin transactions despite operating without official regulatory infrastructure.
Trump’s Expanding Cryptocurrency Engagement
The GENIUS Act became law under Trump’s signature in July 2025, marking America’s first federal legislation governing stablecoins. His administration has demonstrated escalating engagement with cryptocurrency markets overall.
Trump and his relatives maintain involvement with cryptocurrency venture World Liberty Financial, responsible for launching the USD1 stablecoin. Several congressional members have voiced apprehension regarding potential conflicts of interest amid ongoing cryptocurrency regulatory discussions in Washington.
Reports indicate Trump has also explored concepts for tokenizing territory in reconstructed Gaza. This approach would utilize blockchain-based tokens to facilitate population relocation and housing during a hypothetical US administrative period.
In February 2025, Trump advocated that America should “take over” Gaza and transform it into the “Riviera of the Middle East.” An official ceasefire commenced in October 2025, though Israeli military forces have allegedly breached the terms repeatedly.
The White House declined to provide commentary regarding the stablecoin proposal when contacted.
