Officials working with Donald Trump's Peace Council are exploring the creation of a stablecoin for Gaza as part of efforts to restructure the economy of the devastated Palestinian enclave, the “Financial Times“ reports, quoted by BTA.
Talks about introducing a stablecoin, a type of cryptocurrency whose value is tied to a major currency, such as the US dollar, are in the preliminary stages and many details about how it could be introduced in Gaza have not yet been determined. Officials have discussed the idea as part of their plan for the future of the strip, where economic activity collapsed during Israel's two-year war with Hamas and the traditional banking and payment system was severely disrupted.
A source familiar with the project said the stablecoin is expected to be pegged to the U.S. dollar, with the hope that Gulf and Palestinian companies with experience in digital currencies will help lead the effort.
“This won't be a “Gaza Coin” (Gaza Coin) or a new Palestinian currency, a means that will allow Gazans to make digital transactions,“ the source said.
The idea is being led by Liran Tanzman, an Israeli tech entrepreneur and former reservist who now serves as an unpaid advisor to Trump’s Peace Council, which is tasked with rebuilding Gaza.
Other participants in the project include officials from the new Palestinian technocratic government in the Strip, the 14-member National Committee for the Administration of Gaza, and the Office of the High Representative for the Gaza Strip, headed by former UN special envoy Nickolay Mladenov. Both bodies work under the direction of the Peace Council. According to a source familiar with the project, the Peace Council and the National Committee for the Administration of Gaza will make decisions on the regulatory framework and access to the stablecoin, although nothing has yet been finalized.