Trump's Board of Peace Explores Stablecoin Solution for Gaza Economic Reconstruction

The Board of Peace, an initiative launched by US President Donald Trump that requires a $1 billion membership fee, is reportedly examining the potential deployment of a stablecoin to facilitate Gaza's economic recovery after more than two years of conflict stemming from a Hamas terror attack in October 2023.

According to a Financial Times report published Monday, the board has entered preliminary discussions regarding whether a stablecoin could serve as a tool for rebuilding Gaza's devastated economy. A source with knowledge of the initiative clarified that the proposed digital asset would not function as a meme coin or substitute for traditional fiat currency, but rather as "a means to allow Gazans to transact digitally."

The Board of Peace Structure

Trump unveiled the Board of Peace in January, establishing a framework where countries must contribute $1 billion for permanent, renewable membership status. The United States pledged $10 billion to the initiative, according to Trump's social media announcement. While the majority of Western European nations declined participation, 26 countries including Israel, Saudi Arabia, Hungary, and El Salvador became founding members.

The Financial Times report did not identify which entity would be responsible for issuing the stablecoin if the board proceeds with the plan. However, the Trump administration has consistently championed policies that expand stablecoin usage domestically, including the president's signing of the GENIUS Act into law in July.

Industry Skepticism and Implementation Challenges

Snir Levi, CEO of blockchain intelligence platform Nominis, expressed caution regarding the proposal's current state of development. "The current proposal for the Gaza stablecoin is still very premature," Levi told Cointelegraph. He highlighted existing regulatory gaps, noting that "over the last two years, OTC desks in Gaza have moved over $100 million in stablecoins with almost no restrictions, without the proper framework, same thing will happen with the Gaza stablecoin."

This warning underscores concerns about implementing cryptocurrency infrastructure in a region lacking comprehensive regulatory oversight and financial governance structures.

Broader Tokenization Plans Under Consideration

The stablecoin initiative represents just one component of the Trump administration's blockchain-focused approach to Gaza's reconstruction. Reports indicate that Trump has also considered plans to tokenize land and utilize digital tokens to facilitate resident relocation and rehousing during a potential US occupation of the territory.

In February 2025, before a ceasefire agreement was established, Trump publicly stated that the US should "take over" Gaza and transform it into the "Riviera of the Middle East." A ceasefire agreement has been officially in place since October 2025, though Israeli forces have allegedly violated the terms repeatedly. Extensive portions of populated areas throughout the territory have suffered destruction or severe damage since 2023.

Geopolitical and Economic Context

The exploration of stablecoin technology for post-conflict reconstruction represents an unprecedented application of blockchain infrastructure in humanitarian and economic development contexts. The proposal emerges as the Trump administration positions itself as supportive of cryptocurrency innovation while simultaneously engaging with complex Middle Eastern geopolitical dynamics.

The initiative's success would depend on numerous factors including international cooperation, regulatory framework development, infrastructure deployment, and acceptance by local populations facing massive displacement and economic hardship.

Coinasity's Take

While the application of stablecoin technology for humanitarian reconstruction presents innovative possibilities, the Gaza proposal raises significant concerns about implementation viability and regulatory readiness. The $100 million in unregulated stablecoin transactions already flowing through Gaza's OTC desks demonstrates both existing demand for digital payment solutions and the serious governance gaps that must be addressed. Without robust frameworks for oversight, consumer protection, and anti-money laundering compliance, a government-backed stablecoin risks replicating existing problems rather than solving them. The Board of Peace's preliminary discussions represent an intriguing intersection of blockchain technology and geopolitical reconstruction efforts, but transforming this concept into a functional, beneficial system will require far more than technological deployment—it demands comprehensive regulatory architecture and international coordination that currently appears absent from the proposal.