FT: Trump advisers explore digital dollar plan for Gaza

Advisers connected to Donald Trump’s so-called “Board of Peace” are examining the possibility of introducing a US dollar-backed stablecoin for Gaza, according to a report by the Financial Times.

The initiative remains at an early exploratory stage but signals a potential move toward using cryptocurrency as a central component of Gaza’s post-war economic reconstruction.

The proposed stablecoin would be pegged to the US dollar and designed to support digital payments rather than function as a sovereign currency. Governance of the system would involve the Board of Peace alongside Gaza’s interim technocratic administration.

Discussions are taking place as Gaza’s conventional banking system remains severely weakened. Access to cash has been heavily restricted since 2023 following widespread destruction of ATMs and tight limitations on physical currency deliveries. As a result, digital payments have grown more common, although telecommunications connectivity and financial infrastructure continue to face serious constraints.

The Board of Peace forms a core element of Trump’s broader 20-point framework for Gaza. Trump chairs the body, whose members reportedly include senior US officials such as Secretary of State Marco Rubio and envoy Steve Witkoff, as well as international figures including former UK prime minister Tony Blair and Ajay Banga, president of the World Bank.

The board is responsible for overseeing Gaza’s transitional governance arrangements, reconstruction planning, and economic recovery efforts, while coordinating with a Palestinian technocratic committee tasked with restoring public services and managing day-to-day administration. During the transition period, security and policing are expected to be handled by an international stabilisation force.

Within this broader framework, the stablecoin proposal reflects an attempt to rebuild Gaza’s financial system without relying on traditional banking infrastructure. In theory, a digital dollar system could help revive economic activity by enabling aid distribution, salary payments, and everyday transactions even in the absence of functioning banks. Supporters argue that such a system could also improve transparency and reduce corruption in aid delivery.

At the same time, the idea raises significant ethical and political concerns. A digitally managed currency overseen by an international body could grant external actors unprecedented influence over Gaza’s financial system, allowing transactions to be monitored and potentially restricting or revoking access.

Critics also warn that introducing a separate payment mechanism could deepen Gaza’s economic separation from the West Bank. Practical challenges remain as well, including limited technological capacity and Gaza’s continued reliance on slow 2G telecommunications networks, which could complicate widespread adoption.

For now, the stablecoin remains only a proposal. If ultimately implemented, however, it could become one of the first large-scale attempts to rebuild a post-conflict economy using digital dollar infrastructure — a development that may shape both Gaza’s economic future and the evolving global role of stablecoins.

By Tamilla Hasanova