Backed by the US dollar…the Peace Council is considering launching a digital currency for Gaza

The Financial Times newspaper said yesterday, Monday, that the administration of US President Donald Trump is discussing with the Peace Council and the Gaza Administration Committee the possibility of launching a stable digital currency backed by the dollar as part of the plan to rebuild the economy in the Gaza Strip.

The newspaper explained, citing informed sources, that the plan is still in its initial stages, and that a new Palestinian currency will not be issued, but rather the stable digital currency will serve as an electronic payment mechanism, after the banking system was damaged and access to the shekel declined since the start of the war in October 2023.

The sources added that the “Peace Council” and the Gaza Administration Committee will take decisions regarding the regulatory framework for the digital currency.

This proposal comes within the framework of a broader vision for the future of Gaza, in light of the collapse of economic activity as a result of the two-year-long war, and the disruption of the banking system and traditional means of payment.

The newspaper indicated that officials from the Gaza Administration Committee are participating in this project, and it is expected that the digital currency will be linked to the US dollar, with support from digital asset companies.