Officials with the Board of Peace, the United States-led body overseeing postwar reconstruction in Gaza, are exploring the creation of a digital stablecoin to help revive the territory’s collapsed economy. The proposed currency would be pegged to the United States dollar to maintain a steady value and is still in the early planning stages.

The initiative is reportedly being led by Israeli technology entrepreneur Liran Tancman, who serves as an unpaid adviser to the board and has worked with senior United States officials on Gaza-related efforts. Members of the Palestinian National Committee for the Administration of Gaza and representatives linked to the United Nations are also involved in preliminary discussions.

Gaza’s economy has been severely strained by cash shortages after Israel halted the flow of physical currency into the territory during the war that began in October 2023. Banks and financial institutions have been weakened, wealthy residents withdrew funds and fled, and businesses increasingly demanded cash payments. Supporters of the digital currency say it could ease liquidity problems and limit armed groups’ access to physical cash.

Challenges remain, including limited telecommunications infrastructure in Gaza, where only slow mobile service is currently permitted. Backers of the plan say high-speed access will be introduced in the coming months, potentially enabling wider use of a digital payment system as reconstruction efforts continue.