A new proposal from former U.S. President Donald Trump’s Peace Council is sparking debate, as advisors consider a large-scale stablecoin issuance to aid Gaza’s post-war reconstruction. According to the Financial Times, Council advisors are in talks about creating a stablecoin specifically designed to help rebuild Gaza’s shattered economy, with support from an Israeli tech company reportedly on the table.
Stablecoin Plans for Gaza
While U.S. politicians have frequently opposed cryptocurrency donations being sent to victims of Israel’s military operations in the region, digital assets emerged as a crucial lifeline for Palestinians trapped under blockade. Many locals were able to survive only by receiving donations and making transactions through crypto wallets, a method that drew widespread attention and popularity throughout the conflict. Now, officials advising Trump’s Peace Council are reportedly working on launching a U.S. dollar-pegged stablecoin in Gaza, hoping to jumpstart economic recovery with technology-based solutions.
Israeli Tech Expertise and Financial Hurdles
The key motivation behind the initiative is preventing aid funds from reaching Hamas. Israel’s military operations decimated Gaza’s banking and payment infrastructure, leaving the territory with little to no functioning financial channels. In light of this, experts advising the Council have concluded that crypto wallets offer the most effective, transparency-driven means for delivering and tracking financial support amid ongoing instability.
Israeli tech entrepreneur Liran Tancman is reportedly one of the main consultants shaping the project. Despite the Palestinian Monetary Authority serving as the central bank for both Gaza and the West Bank, Israel’s new shekel remains the predominant currency in local transactions—and since 2023, Gazans’ access to physical cash and traditional banking services has declined dramatically due to tightened restrictions.
The reliance on cryptocurrencies for basic needs and aid payments came about after the destruction of conventional banking systems. U.S. officials have often voiced concerns that crypto can be misused to finance armed groups, but proponents of the stablecoin plan claim its technical design would ensure security and prevent abuse.
Under the potential scheme, a stablecoin pegged to the U.S. dollar would be issued with the sponsorship of an Israeli fintech company. Sources close to the discussions suggest that the digital token would serve as a reliable and trackable medium of exchange for Gazans, while gating unauthorized parties from exploiting relief funding.
The proposal raises questions about how such a system could be implemented amid the political and logistical realities on the ground, including the ongoing blockade and lack of infrastructure in Gaza. However, advisors insist that blockchain solutions offer an unprecedented level of oversight, speed, and inclusivity for distributing humanitarian aid in crisis zones.
While debates continue over the feasibility and ethics of introducing stablecoins into conflict zones, the Trump Peace Council’s approach illustrates a growing trend among policymakers to leverage digital finance tools for humanitarian purposes. Whether this initiative comes to fruition remains uncertain, but it demonstrates a shift toward using technology to address entrenched economic obstacles in Gaza.
