Trump’s Board of Peace Weighs Dollar Stablecoin for Gaza as Cash Shortages Persist

Officials working with Donald Trump’s Board of Peace are exploring a dollar-pegged stablecoin for Gaza as part of early plans to rebuild payments infrastructure in the region.

The discussions are still preliminary, and key details remain open, including who would issue the token, how access would be controlled, and what oversight framework would apply. The proposal is being discussed as Gaza continues to face severe cash shortages and heavy disruption to banking services.

The plan focuses on digital payments, not a new currency

The proposal under discussion is aimed at giving Gazans a way to make digital payments in a market where cash access has been badly damaged by war. It is not being framed as a new local currency. The idea being discussed is a dollar-linked settlement tool for transactions, not a replacement for existing legal tender arrangements used in the Palestinian territories.

The project has been linked to officials working across the Board of Peace structure and Gaza’s new administrative bodies, with discussions focused on how a digital payments layer could support commerce and basic services if it can be deployed safely.

Cash shortages in Gaza are driving the proposal

The strongest case for the proposal is practical, not ideological. Gaza has faced a prolonged shortage of physical cash, with damaged bank branches, closed ATMs, and limits on banknote flows, leaving residents with fewer ways to pay for daily goods.

That shortage has pushed many people toward costly workarounds. Residents have often had to use brokers or merchants to turn electronic balances into cash, paying steep fees in the process.

Even when electronic transfers are available, cash remains central for many day-to-day purchases. That means any digital payment plan would need to work in a market where trust, merchant acceptance, and liquidity are already under strain.

Oversight and links to Palestinian banking remain unresolved

The policy questions are larger than the technology. Any stablecoin plan for Gaza would need rules on issuance, compliance, access, and transaction monitoring, and those decisions have not been finalised.

There is also a broader institutional question around how such a system would interact with existing Palestinian financial authorities and payment structures. Officials have reportedly discussed governance options, but no final framework has been set.

Another concern in the discussions is whether a Gaza-specific payment rail could weaken economic links with the West Bank if it is not designed to remain interoperable with broader Palestinian financial channels.

Rollout risks remain high because of power and network instability

Execution risk is high even if policymakers agree on the design. Gaza has faced repeated power disruptions and weak telecom conditions, which can limit the reliability of digital payment systems.

Those constraints matter more in payments than in trading. A system can only work if users can consistently access wallets, merchants can accept transfers, and networks remain available at the point of sale. For that reason, any rollout would likely depend as much on communications and utility stability as on the token model itself.

Stablecoin debates are now shaping reconstruction planning

The timing is notable because stablecoins are no longer being treated only as crypto market products. They are increasingly part of public policy and payment system discussions in Washington after the U.S. created a federal framework for dollar-pegged stablecoins last year.

That shift does not make the Gaza plan easier to execute, but it does help explain why officials are testing a stablecoin option at such an early stage of reconstruction planning.

If the talks move forward, the first real milestone will not be a token launch. It will be a workable rule set on access, oversight, and coordination with existing institutions, because without that, the proposal remains a concept rather than a payment system.