- Gaza’s new technocratic government is trying to place the stablecoin as a means to reduce the use of physical cash.
- Cash shortages in Gaza have worsened since 2023 after Israel restricted the flow of physical shekels.
- Israeli tech entrepreneur Liran Tancman is leading the discussions and is advising the U.S.-led Board of Peace on the project.
President Donald Trump's "Board of Peace" is reportedly exploring the creation of a dollar-backed stablecoin for Gaza as part of its broader efforts to rebuild the economy after the war.
According to a Financial Times report, the idea is still in its early stages and aims to bring a stablecoin to Gaza to make digital transactions easier, as the economy has collapsed and the traditional banking system has been severely disrupted after two years of war between Israel and Hamas.
A source close to the talks told FT that the digital token would not be a new Palestinian currency or a "Gaza Coin." Instead, it would be a way for people to do business online. The stablecoin is likely to be linked to the U.S. dollar, and digital currency companies in the Gulf Arab and Palestinian regions may help build the system.
Liran Tancman In Charge Of The Project
The report further noted that Liran Tancman, an Israeli tech entrepreneur and former reservist, is in charge of the project. He is also an unpaid adviser to the U.S.-led "Board of Peace,” the body responsible for ensuring that Gaza is rebuilt.
Members of Gaza's new Palestinian technocratic government, the 14-member National Committee for the Administration of Gaza (NCAG), and the Office of the High Representative, which is led by former UN envoy Nickolay Mladenov, are also taking part in the talks, which are part of the "Board of Peace."
The report added that the Board of Peace and the NCAG would decide the rules and regulations governing access to the stablecoin, but no final decisions have been made yet.
Tancman spoke at a Board of Peace meeting in Washington last week and said that the NCAG was working to build "a secure digital backbone"—an open platform that would enable e-payments, financial services, e-learning, and healthcare, with users having control over their data. However, no operational data was given.
Cash Shortages In Gaza
Since the war started in 2023, it has become difficult to get physical shekels. Israel has stopped new cash from getting into Gaza and destroyed or closed down cash machines.
Traders and brokers have taken over the small amounts of cash that are available and often charge high fees to get it to people. As a result, more people have started using electronic payment systems.
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