The Financial Times has revealed that officials from the Peace Council in Gaza, established during Donald Trump’s presidency, are in discussions regarding the potential launch of a stablecoin. This initiative is primarily aimed at addressing the economic devastation caused by ongoing Israeli conflict in the area. Given the dire state of Gaza's economy, these discussions could mark a significant development in financial practices within the region.

The report indicates that talks surrounding the cryptocurrency are still in their infancy, with many operational details yet to be clarified. A stablecoin, by definition, is a type of digital currency that is pegged to a stable reserve, such as the US dollar, enabling it to maintain a steady value. This concept appears appealing for Gaza, where traditional banking and payment systems have been severely impaired due to the extensive impact of war.

Sources suggest that the proposed stablecoin would be directly tied to the dollar, enhancing its credibility and stabilizing its value. Furthermore, there are plans for Palestinian and Gulf-based companies with experience in cryptocurrency to support this new project. If implemented successfully, this cryptocurrency could potentially provide a significant boost to Gaza’s financial infrastructure, facilitating easier transactions and helping to stimulate economic activity in the region.