Board of Peace Plans to Use USD Stablecoin as One of the Instruments of Peace in Gaza

Donald Trump's Board of Peace officially confirmed it is exploring a US dollar-backed stablecoin for the Gaza Strip as part of a broader post-war economic reconstruction plan, with the initiative first reported by the Financial Times on February 23, 2026. 

The project is being led by Israeli tech entrepreneur Liran Tancman, who is serving as an unpaid adviser to the Board of Peace, and aims to alleviate severe cash shortages in the war-torn region. 

The proposal remains in preliminary stages, with no final decisions made on implementation, governance structure, or which stablecoin technology will be used.

Key Takeaways

• The proposed stablecoin would be pegged to the US dollar and function as a digital payments tool, not a new Palestinian currency or replacement for the Israeli shekel, with Gulf Arab and Palestinian digital asset firms potentially supporting implementation.

• Gaza's banking system has effectively collapsed, with 93% of bank branches damaged or destroyed and only 3 of 94 ATMs still functional, making a digital payment alternative an urgent practical need rather than purely a political initiative.

• Critics warn the initiative raises serious concerns about economic separation from the West Bank, financial surveillance of Gaza's entire population, and governance risks given the Board of Peace's concentrated power structure under Trump's personal chairmanship.

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What is the Board of Peace and Why Does It Matter?

The Board of Peace was established by Donald Trump in January 2026 on the sidelines of the World Economic Forum in Davos, and formally recognized through UN Security Council Resolution 2803. 

Trump appointed himself Chairman for Life of the body, which is tasked with overseeing Gaza's reconstruction, transitional governance, and economic recovery. 

Its members include senior US officials such as Secretary of State Marco Rubio and envoy Steve Witkoff, alongside international figures like former UK Prime Minister Tony Blair and World Bank President Ajay Banga.

At its inaugural meeting on February 19, 2026 in Washington, the Board secured $17 billion in reconstruction pledges, with $10 billion from the United States and $7 billion from Gulf states, to be held via a World Bank account. 

Additional commitments include $2 billion from the UN and $75 million from FIFA for sports programs. 

An international stabilization force of approximately 20,000 troops from Albania, Indonesia, Kazakhstan, Kosovo, and Morocco, alongside 12,000 police forces trained by Egypt and Jordan, is planned to secure the transition.

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Gaza's Collapsed Financial System: The Problem the Stablecoin Aims to Solve

To understand why a stablecoin is being considered, the scale of Gaza's financial collapse must be understood first. 

According to the World Bank and the Palestinian news agency WAFA, 93% of bank branches are damaged or destroyed, and the destruction rate for microfinance institutions and insurance companies stands at 88%. 

Israel has restricted cash transfers to the Gaza Strip since October 2023, leaving local bank reserves virtually depleted.

Gaza's GDP shrank cumulatively by 87% to $362 million in 2023 and 2024, inflation in many sectors exceeds 500%, nearly 500,000 jobs were lost, and poverty now affects over 63% of the population. 

The Palestine Monetary Authority is not permitted to issue its own currency, leaving the Israeli shekel as formal legal tender alongside US dollars and Jordanian dinars, but without functioning banks, payment transactions have largely come to a standstill.

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What the Stablecoin Would and Would Not Do?

A source familiar with the discussions was explicit with the Financial Times that the digital token would not be a new Palestinian currency or a Gaza Coin, but rather a means to allow Gazans to transact digitally. 

The stablecoin would support electronic payments, financial services, e-commerce, and digital business activities without replacing the shekel as legal tender. 

If Trump's group decided to promote an existing coin rather than creating a new one, the most prominent candidates would include Tether, which has deep connections to Commerce Secretary Howard Lutnick's firm Cantor Fitzgerald, and World Liberty Financial's USD1, which is co-founded by Trump's sons.

The Board of Peace and the NCAG would be responsible for deciding the rules and regulations governing access to the stablecoin, though no final decisions have been made yet. 

Tancman described the broader vision as building a secure digital backbone for Gaza encompassing e-payments, financial services, e-learning, and healthcare, with users retaining control over their own data.

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Stablecoins in Conflict Zones: Precedents That Inform This Plan

The concept of deploying stablecoins for humanitarian purposes is not without precedent. 

The UN refugee agency UNHCR already uses USDC to reach thousands of war-displaced people in Ukraine, where nearly $100 million in crypto donations flowed into emergency relief during the early phases of the conflict. 

The World Food Programme has also used dollar stablecoins for aid disbursements in multiple conflict zones.

In Afghanistan, Mercy Corps partnered with HesabPay to pilot a stablecoin-based aid system for smallholder farmers, distributing $30,000 in HAFN pegged to the afghani, with costs dropping 29% and disbursement accelerating by 10 hours compared to traditional money transfer agents. 

Crucially, that system relied on offline-capable physical cards for users without smartphones or internet, a design feature that Gaza's initiative would likely need to replicate given local infrastructure constraints.

Significant Obstacles and Criticisms

The initiative faces substantial practical and political hurdles. Critics warn that a Gaza-focused stablecoin could further separate the enclave's economy from the West Bank and raise governance concerns, particularly given Gaza's power outages and reliance on 2G networks. 

Economic integration between Gaza and the West Bank is widely considered critical for any viable Palestinian statehood framework, and a separate digital payment system could accelerate financial fragmentation between the two territories.

Conclusion

A digitally controlled currency governed by an international body could give external actors unprecedented influence over Gaza's financial system, where every transaction could be tracked and access could potentially be restricted or revoked. 

Human rights organizations have additionally raised concerns about Tancman's biometric registration system for aid recipients, which critics argue converts humanitarian zones into surveillance checkpoints. 

High-speed internet upgrades are planned for July 2026 before any stablecoin deployment would be technically feasible, and Hamas has signaled resistance by accusing Israel of ceasefire breaches.

FAQ

What is the Board of Peace's stablecoin plan for Gaza?

Trump's Board of Peace is exploring a USD-pegged stablecoin to restore digital payments in Gaza, whose banking system has almost entirely collapsed.

Will the stablecoin replace the Israeli shekel in Gaza?

No. It would function as a digital payment tool only, not a new Palestinian currency or replacement for the shekel.

Which stablecoin could be used in Gaza?

No final decision has been made, but candidates include Tether and World Liberty Financial's USD1, co-founded by Trump's sons.

Why does Gaza need a stablecoin?

93% of bank branches are destroyed, only 3 ATMs remain functional, and cash flow has been restricted since October 2023.

When could the Gaza stablecoin launch? 

Not before July 2026 at the earliest, when Gaza's planned network upgrade from 2G to higher-speed internet is scheduled for completion.

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