Trump Panel Explores Dollar Stablecoin for Postwar Gaza
The Board of Peace is examining a dollar-pegged stablecoin proposal for Gaza's destroyed financial system that would involve Gulf Arab and Palestinian companies experienced in cryptocurrency systems.
Key Takeaway
Digital dollar plan for Gaza faces economic division concerns despite Hamas revenue goals.
A Trump administration advisory panel is examining a stablecoin plan for postwar Gaza that would peg a digital currency to the dollar and limit Hamas revenue streams.
The Board of Peace discussions involve building digital payment infrastructure through Gulf Arab and Palestinian companies experienced in cryptocurrency systems. Five individuals briefed on the preliminary talks confirmed the concept to Financial Times. A 14-member National Committee for the Administration of Gaza would set regulatory rules and determine who gets access to the system.
One person familiar with the project described the goal bluntly: dry Gaza from cash so Hamas can't generate any. The two-year war between Israel and Hamas crippled Gaza's financial infrastructure, creating what advocates say is an opening for a dollar-backed digital currency to replace traditional banking.
But the proposal faces serious pushback from people who see it fracturing Palestinian economic ties. One individual familiar with the talks warned that Gaza would become almost like a self-contained economy without easy payment links to the West Bank. That would be a major concern for maintaining economic connections between the two territories, the source said.
The stablecoin concept remains in early stages with no clear timeline for implementation. The National Committee for the Administration of Gaza would need to approve any regulatory framework before launch, with no publicly named Gulf Arab or Palestinian companies yet identified as participants.
This article was written based on reporting from Bitcoinist.
