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Officials advising Donald Trump’s “peace council” are exploring the creation of a US dollar-backed stablecoin for Gaza, the Financial Times reports. The proposal is still in its early stages.
However, this indicates a possible shift towards the use of cryptocurrency as essential infrastructure in the post-war economic reconstruction of Gaza.
Turning Gaza into a crypto project?
According to the newspaper Financial TimesThe stablecoin will be pegged to the US dollar and used to facilitate digital payments, not to exchange Gaza for a sovereign currency.
The government will include the Peace Council and the Interim Technical Administration of Gaza.
These talks come at a time when Gaza’s banking system remains severely impaired. Access to cash has been restricted from 2023 due to the destruction of ATMs and restrictions on the delivery of physical currency.
As a result, digital payments have become more common, although connectivity and financial infrastructure remain fragile.
The Peace Council assumes a central role in the transition to Gaza
The peace council is at the heart of Trump’s broader 20-point plan for Gaza. Trump presides over the session. Its members include senior US officials such as Secretary of State Marco Rubio and envoy Steve Witkoff, along with international figures such as former British Prime Minister Tony Blair and World Bank President Ajay Banga.
The council oversees Gaza’s transitional governance, reconstruction planning and economic recovery. It also coordinates with a Palestinian technocratic committee tasked with restoring services and managing day-to-day administration.
Meanwhile, an international stabilization force is expected to take over security and police duties during the transition period.
In this framework, the stablecoin proposal reflects a broader effort to rebuild Gaza’s financial system without relying on traditional banking infrastructure.
The promise of financial access, but the moral risk of control
In theory, a stabilization currency could help restore economic activity. Digital dollars could enable aid, wages and daily transactions even without functioning banks. This could improve transparency and reduce corruption in aid distribution.
However, the plan raises serious ethical and political concerns. A digital currency governed by an international body could give outside actors unprecedented influence over Gaza’s financial system. Every transaction can be tracked.
Access may be restricted or revoked.
Furthermore, the introduction of a separate payment system exposes Gaza to the risk of economic separation from the West Bank. Infrastructure limitations, including Gaza’s reliance on slow 2G networks, may also hinder adoption.
For now, a stablecoin remains only a proposal.
However, if implemented, it represents one of the first attempts to rebuild a post-conflict economy with the digital infrastructure of the dollar – a move that could reshape the future of Gaza and the global role of stablecoins.
