The Trump administration is exploring with the 'Peace Council' and the Gaza Administrative Commission the possibility of launching a dollar-backed stable currency as part of a plan to rebuild Gaza's economy. This was reported by the Financial Times, citing informed sources. According to them, the plan is in its early stages, and no new Palestinian currency will be issued. Instead, the stable currency will serve as an electronic payment mechanism, following damage to the banking system and a decline in access to the shekel since the war began in October 2023. Sources added that the 'Peace Council' and the Gaza Administrative Commission will make decisions regarding the regulatory framework for the digital currency. This proposal is part of a broader vision for Gaza's future amid the collapse of economic activity due to the two-year war and the disruption of the banking system and traditional payment methods. The newspaper noted that officials from the Gaza Administrative Commission are participating in the project, and the digital currency is expected to be pegged to the US dollar, with support from digital asset companies.
