Palestinians buy vegetables at the Zawiya Market in Gaza City during the Muslim holy month of Ramadan Thursday, Feb. 19, 2026. (AP Photo/Jehad Alshrafi)
Officials from the U.S.-led Board of Peace, tasked with overseeing Gaza’s postwar reconstruction, are considering launching a cryptocurrency to help revive the territory’s shattered economy, according to the Financial Times.
The proposed digital currency would take the form of a “stablecoin,” designed to maintain a steady value by being pegged to a dependable asset such as the U.S. dollar, the report said on Feb. 23.
Discussions remain at an early stage, with key details still under review. A source familiar with the initiative stressed that the project is not intended to introduce a separate Palestinian currency, but rather to enable digital transactions for Gaza’s residents.
The effort is reportedly being spearheaded by Israeli tech entrepreneur Liran Tancman, a former member of Israel’s intelligence corps who now serves as an unpaid adviser to the Board of Peace.
He has also collaborated with senior U.S. officials on Gaza-related initiatives over the past year.
The project involves representatives from Gaza’s National Committee for Administration, which operates under the board, as well as the office of Nickolay Mladenov, the former U.N. envoy who serves as the board’s high representative for the territory.
The initiative comes as Gaza faces a severe cash shortage. Residents traditionally use Israeli shekels, but Israel halted the entry of cash into the strip shortly after the 2023 attack led by Hamas, aiming to limit the group’s access to funds for weapons and salaries.
The war triggered a broader financial collapse, with affluent families withdrawing deposits and leaving the territory, while foreign suppliers increasingly demanded cash payments.
Banks and financial institutions in Gaza have been heavily strained
and those with access to shekels often impose steep fees. Proponents of the stablecoin argue it could bypass these bottlenecks and reduce reliance on physical cash. One source said the broader goal is to curb Hamas’s ability to generate funds by drying up cash circulation.
Project backers reject suggestions that the plan would economically isolate Gaza from the West Bank, where Palestinians also use shekels.
However, practical challenges remain, including limited telecommunications infrastructure in the strip, where only slow 2G service is currently permitted. Tancman has reportedly told board members that faster, free internet access could be rolled out by July.
The Board of Peace was established under a Gaza framework proposed by U.S. President Donald Trump. While the plan has entered its second phase, major elements, including Hamas’ disarmament and a phased Israeli military withdrawal, have yet to be realized.
