The administration of U.S. President Donald Trump is considering the creation of a stablecoin, according to Financial Times reporting, which could help with economic reconstruction in the Gaza Strip. The project is still in a very early stage, but it already demonstrates how cryptocurrencies are entering geopolitics and post-war reconstruction efforts.
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Stablecoin for Digital Transactions in Gaza
The idea emerged within an initiative called the Peace Council, whose establishment Trump announced in January. According to the proposal, the Council is meant to bring together states that want to participate in reconstructing the region after two years of war, which began with Hamas’s terrorist attack in October 2023.
According to a source familiar with the project, the stablecoin should not serve as a replacement for traditional currencies or as a speculative cryptocurrency. The aim is to create a digital payment instrument that would enable Gaza residents to conduct ordinary transactions in an environment where traditional financial infrastructure is severely damaged.
Membership Costs Billions and Limited European Interest
The proposal also includes the structure of the Peace Council itself. According to the proposal, states wishing to become members must contribute one billion dollars, which would secure them permanent and renewable membership. The United States, according to Trump’s announcement, has pledged a contribution of 10 billion dollars.
Western European countries mostly declined the invitation, while the founding members include a total of 26 states, including Israel, Saudi Arabia, Hungary, and El Salvador – a country long associated with cryptocurrency adoption. The Czech Republic participates as an observer.
It remains unclear which institution would issue the potential stablecoin or how it would operate from a regulatory perspective.
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Stablecoins Already Operating Unofficially in Gaza
The discussion about stablecoins comes at a time when digital dollars are already being used informally in the region today. According to Snir Levy, CEO of the analytics platform Nominis, over 100 million dollars worth of stablecoins have flowed through OTC markets in Gaza over the past two years, often without significant regulation.
Levy warns that without a clear framework, a similar situation could repeat itself with the official project. He therefore describes the stablecoin proposal as highly preliminary.
Political Support for Stablecoins in the USA
The debate also fits into a broader U.S. policy that in recent years has supported the development of stablecoins. In July, Trump signed the GENIUS Act, which is intended to enable wider use of stablecoins in the American financial system.
This suggests that the Gaza project could be part of a broader strategy that links digital finance, foreign policy, and reconstruction projects.
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Tokenization of Gaza: Another Controversial Plan
The stablecoin is not the only digital initiative being discussed in connection with Gaza. According to available information, Trump also considered a plan for land tokenization after the war, that is, the creation of digital tokens representing plots of land that could be used for relocation and resettlement of residents during potential American administration of the territory.
Trump stated in February 2025 that the United States should “take over” Gaza and transform it into a “Middle Eastern Riviera,” even before a ceasefire agreement was reached.
An official ceasefire has been in effect since October 2025, yet according to reports, it continues to be repeatedly violated and much of the territory remains destroyed or severely damaged.
What This Means for Cryptocurrencies
A potential “Gaza stablecoin” would represent one of the most prominent attempts to use cryptocurrencies directly in post-war reconstruction of a state or region. At the same time, it demonstrates the limitations of such projects – particularly questions of regulation, governance, and political controversy.
The project is currently in the deliberation phase. However, the discussion itself already suggests that stablecoins are increasingly moving from investment instruments into the realm of infrastructure and public policy.
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