War impacts Gaza banks! Trump Peace Committee plans to use USD stablecoins to promote digital transactions

President Trump’s Peace Commission plans to implement a US dollar stablecoin in the Gaza Strip to rebuild the collapsing payment system and cut off Hamas funding. However, the project currently faces concerns over the lack of a regulatory framework.

President Trump’s Peace Commission Explores US Dollar Stablecoin as Gaza Reconstruction Plan

The Financial Times reports that five informed sources say officials collaborating with the Peace Commission established by Trump are evaluating the feasibility of issuing a stablecoin for the Gaza Strip, aiming to reshape the severely damaged local economy.

The Gaza stablecoin is expected to be pegged to major currencies like the US dollar. Discussions are still in the early stages, and specific implementation details in Gaza are yet to be determined.

The Peace Commission was established in January this year, with membership requiring contributions of $1 billion from each country, including Israel, Saudi Arabia, Hungary, and El Salvador as founding members. The United States has pledged $10 billion.

Conflict Disrupts Traditional Banking and Payments in Gaza

During the two-year war between Israel and Hamas, Gaza’s economy has completely collapsed, and traditional banking and payment systems have been severely damaged. ATMs have been destroyed or shut down, and Israel has blocked new cash inflows, severely limiting residents’ access to cash, forcing them to turn to digital transactions.

Another informed source revealed that, besides providing digital transaction solutions, the initiative also aims to reduce cash circulation in Gaza to cut off any funding channels for Hamas.

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Image source: Collections - GetArchive　Map of Gaza Strip in 2025

Commission Aims to Have an International Expert Team Lead Gaza Stablecoin Framework

Sources say that the stablecoin issued in Gaza is expected to be pegged to the US dollar, and they hope that Gulf Arab countries and Palestinian businesses with digital currency expertise can assist in advancing this plan. They do not intend to issue a new Gaza-specific currency; the main goal is to provide Gaza residents with digital transaction channels.

The concept of Gaza stablecoin is currently led by Israeli tech entrepreneur and retired military officer Liran Tancman, who is serving as a volunteer advisor at the US-based Peace Commission responsible for Gaza reconstruction.

Participants also include the Palestinian new tech bureaucratic government, the Gaza Administrative National Committee composed of fourteen members, and the Office of the High Representative led by former UN Special Envoy Nickolay Mladenov. Both organizations operate under the framework of the Peace Commission.

Lack of Regulatory Framework Raises Industry Concerns Over Gaza Stablecoin

The Financial Times did not specify which entity would be responsible for issuing the stablecoin if the commission proceeds with the plan.

Snir Levi, CEO of blockchain information platform Nominis, questions this, stating that the Gaza stablecoin proposal is still very immature.

He points out that over the past two years, over $100 million worth of stablecoins have been transferred through unregulated over-the-counter (OTC) markets in Gaza, and he worries that future Gaza stablecoins could face similar regulatory issues.

Gaza Administrative National Committee Building Secure Digital Infrastructure

While expanding digital transactions can help Gaza’s local businesses continue operating despite changes in Israeli government policies, some participants worry that if future digital currencies are not controlled by the Palestinian Financial Authority, it could further sever Gaza’s economic ties with the West Bank.

Tancman stated at a Washington conference last week that the Gaza Administrative National Committee is working to establish a secure digital backbone network and open platform to support electronic payments, financial services, digital learning, and healthcare. They also pledged to upgrade Gaza’s network by July this year, providing free high-speed internet to maintain basic services.

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