• A US-dollar-backed stablecoin is being explored to enable digital transactions in Gaza, aiming to limit cash flow to Hamas while supporting economic revival.
  • The initiative, led by Israeli tech adviser Liran Tancman with Gaza's technocratic NCAG government, follows $17 billion in reconstruction pledges secured by the Board of Peace in February 2026.
  • High-speed internet upgrades are planned by July 2026 to support the digital infrastructure, though concerns persist over economic separation from the West Bank and Gaza's limited power access.

Officials from Donald Trump's Board of Peace are in early-stage discussions to deploy a US-dollar-backed stablecoin for Gaza's economic revival, according to people familiar with the matter. The initiative, potentially linked to Trump's family interests, aims to enable digital transactions to bypass cash restrictions and limit Hamas funding, as the territory grapples with destroyed infrastructure and restricted cash access.

Led by Israeli tech adviser Liran Tancman with Gaza's technocratic NCAG government, the stablecoin would support e-payments, financial services, and digital commerce without replacing the shekel. This effort builds on the Board's inaugural meeting on February 19, 2026, which secured $17 billion in pledges—$10 billion from the US and $7 billion from Gulf states via a World Bank account—outlining reconstruction starting in Rafah. The Board, chaired by Trump for life with leadership including Jared Kushner and high representative Nikolay Mladenov, is an international body ratified in January 2026 at Davos and UN-endorsed via Resolution 2803 in November 2025, focusing on Gaza redevelopment until Palestinian Authority reform.

Concerns remain over potential economic separation from the West Bank and Gaza's limited power and network access, though upgrades to high-speed internet are planned by July 2026. The stablecoin is intended to channel funds on-chain for projects, fees, and tokenized returns, raising critiques of "disaster capitalism" exploiting the ruins for gain. In a brief statement, a Board spokesperson emphasized that "this digital approach aligns with our goal to modernize governance and attract private investment while ensuring transparency." Attempts to reach Hamas representatives for comment were unsuccessful.

Gaza's reconstruction needs are estimated at around $70 billion, with additional pledges including $2 billion from the UN and $75 million from FIFA. The stablecoin initiative reflects broader trends in using digital currencies for conflict zones to enable cashless aid and e-commerce in low-infrastructure areas. Gulf investment via Kushner's Affinity Partners is eyeing contracts, such as with Egypt's military firms, as part of this push. The Board sets regulatory rules for governance and investment, with Congress required to approve US funds, adding a layer of political scrutiny to the rollout.

Short-term outlook includes Rafah reconstruction start, deployment of the International Stabilization Force (ISF) with ~20,000 troops and 12,000 police pledged, and stablecoin pilot programs. Hamas has signaled resistance, accusing Israel of ceasefire breaches, while Mladenov stresses a unified demilitarization message. Experts predict hurdles from distrust between Hamas and Israel, as well as funding shortfalls, but if successful, the effort could pave the way for a modernized economic framework in Gaza. This article was updated to clarify that the stablecoin would not replace the shekel but complement digital transactions.