US President Donald Trump’s ‘Board of Peace’ is exploring the formation of a stablecoin to address the cash shortage situation in Gaza, according to a report from the Financial Times. The board wants to revolutionize and modernize financial payments in the conflict-ridden territory. FT reported that the idea is still in its early stages of discussion and remains fluid.

The report states that officials do not plan to replace the Israeli shekel but develop a stablecoin as an alternative digital payment system. Gaza’s economy has been hard hit, and banks, ATMs, and armoured cash deliveries are facing monetary shortages. Trump’s Board of Peace aims to fill in the void with the launch of a stablecoin in Gaza.

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Trump’s Stablecoin For Gaza To Be Pegged to the US Dollar?

The FT report states that Israeli tech entrepreneur Liran Tancman is leading the talks. Inputs have also come from other Gulf Arab and Palestinian firms. Sources close to the development spoke on the condition of anonymity that Trump’s Gaza stablecoin intends to kick-start commerce and aid distribution in the war-torn region.

The source revealed that the Gaza stablecoin will not replace any other currency. “This will not be a ‘Gaza Coin’ or a new Palestinian currency, but a means to allow Gazans to transact digitally,” he said. However, there is still no clarity on whether the Board of Peace is considering pegging the stablecoin to the US dollar. Almost all stablecoins on the market are currently pegged 1:1 to the US dollar.

The National Committee for the Administration of Gaza (NCAG) and the Office of the High Representative come under the Board of Peace. “The Board of Peace, NCAG, and the Office of the High Representative for Gaza are looking into all options (stablecoin) that will jump-start the Gazan economy,” said a Trump administration official.