Trump‑Backed “Board of Peace” Mulls USD‑Pegged Stablecoin for Gaza
By [Your Name] – February 23 2026
A newly formed peace‑building body convened by former U.S. President Donald Trump is reportedly evaluating the launch of a U.S.‑dollar‑backed stablecoin to address chronic cash shortages in the Gaza Strip. The proposal, first disclosed by the Financial Times on Thursday, is being spearheaded by Israeli technology entrepreneur Liran Tancman, who also serves as an unpaid adviser to the organization.
Background
The “Board of Peace,” announced at the World Economic Forum in Davos last month, brings together a 14‑member National Committee for the Administration of Gaza (NCAG) and the Office of the High Representative, headed by Nickolay Mladenov. Both entities are expected to shape the regulatory framework and determine user access to any digital asset that may be introduced.
While the initiative is still in its conceptual phase, insiders say the stablecoin would be tethered to the U.S. dollar rather than positioned as a sovereign Palestinian currency. The aim is to provide Gazans with a reliable, digital medium of exchange that can function despite the region’s disrupted banking infrastructure.
What the Stablecoin Could Offer
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Liquidity Relief – Gaza’s economy has been strained by sanctions, banking restrictions, and the physical destruction of cash‑handling facilities. A dollar‑pegged token could supply a stable store of value for everyday transactions.
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Digital Infrastructure – Tancman has advocated for a “secure digital backbone” that supports e‑payments, financial services, e‑learning, and health‑care platforms. A stablecoin could serve as the monetary layer for such applications.
- Cross‑Border Reach – Tokenised dollars can be moved instantly across borders, potentially easing the flow of humanitarian aid and remittances from diaspora communities.
Open Questions
| Issue | Considerations |
|---|---|
| Regulatory Oversight | The NCAG and the Office of the High Representative must decide on licensing, AML/KYC protocols, and consumer protections. |
| Distribution Mechanism | Whether the token will be issued via a public blockchain, a permissioned ledger, or a hybrid solution remains unclear. |
| Adoption Barriers | Limited internet connectivity, low digital‑literacy rates, and political sensitivities could impede uptake. |
| Funding & Governance | The source of capital for the token’s reserves and the governance model for future updates have not been disclosed. |
Market Context
Stablecoins have become an integral part of the decentralized finance (DeFi) ecosystem, providing a bridge between fiat currencies and blockchain‑based assets. The proposal aligns with a broader trend of leveraging crypto‑infrastructure for humanitarian purposes—a field that has seen pilots ranging from blockchain‑based cash transfers in refugee camps to tokenised aid vouchers in conflict zones.
However, the Gaza environment presents unique challenges: ongoing conflict, a fragile health system reporting a death toll of roughly 70,000 Palestinians since October 2023 (as cited by Reuters), and a complex web of political actors. Any digital financial solution will need to navigate these sensitivities while delivering tangible benefits.
Key Takeaways
- Strategic Initiative – The Board of Peace is exploring a USD‑pegged stablecoin as part of a larger effort to build a digital financial layer in Gaza.
- Leadership – Israeli tech entrepreneur Liran Tancman, an adviser to the Board, is driving the technical and strategic vision.
- Regulatory Role – The NCAG and the Office of the High Representative will shape the token’s legal and compliance framework.
- Potential Impact – If successful, the stablecoin could mitigate cash shortages, streamline aid distribution, and lay groundwork for broader e‑services.
- Risks Remain – Distribution logistics, user adoption, and geopolitical constraints pose significant hurdles that must be addressed before the project can move beyond the feasibility stage.
The information in this article is based on reporting from the Financial Times and Reuters, supplemented by publicly available statements from project participants. This piece was prepared with the assistance of AI‑driven editorial tools.
Source: https://thedefiant.io/news/regulation/trump-board-of-peace-explores-usd-stablecoin-for-gaza-ft
