
Board of Peace Explores Dollar-Pegged Stablecoin to Enable Gaza Payments
Stablecoin proposal targets Gaza payments amid cash shortages
A coalition convened under the Board of Peace is weighing the creation of a dollar-pegged digital currency to let residents of Gaza transact electronically where physical cash has largely vanished. The effort is being driven by private-sector technologists working alongside a body tied to external administrators for Gaza, and it is in early-stage discussions rather than deployment planning.
Proponents frame the plan as a way to reconstitute basic economic activity — payments for food, healthcare, and e-services — by building a secure digital backbone and an open payments platform managed with user data controls. Design discussions reportedly emphasize a USD peg to limit local currency volatility and to preserve purchasing power for humanitarian flows.
Operationally, the group faces immediate obstacles: sanctions screening, anti-money-laundering (AML) controls, cross-border settlement rails, and the destruction of banking infrastructure inside Gaza. Those constraints will force technical workarounds — guarded custody arrangements, permissioned ledgers, and identity controls that may be controversial.
Leadership ties to high-profile political figures have already amplified scrutiny. The initiative sits outside UN channels and links to an invited-membership coalition that lists a $1 billion membership fee; that funding model will shape governance, access, and perceived legitimacy.
If the project advances, short-term activity will focus on pilots for merchant payments and humanitarian transfers routed through compliant on- and off-ramps, plus integrations with digital ID and aid-distribution systems. Technical partners are reportedly exploring both custodial stablecoins and permissioned token models to reconcile AML and operational continuity.
Expect accelerated debate in capitals and in financial regulators: a currency-like digital instrument used in a conflict zone intersects sovereignty, sanctions enforcement, and donor coordination in novel ways. Some states and institutions will likely demand strong auditability and controls before routing funds into any such platform.
On the ground, a stablecoin could restore limited market functioning quickly — merchants accepting crypto-like tokens, remittance corridors using digital rails, and humanitarian agencies disbursing aid without physical cash convoys. Yet the same mechanics create vectors for political actors to exert leverage via platform controls and access restrictions.
Because the concept is still formative, timelines remain uncertain; immediate pilots could appear within months, but full-scale rollouts would require regulatory clearances and partnership agreements spanning multiple jurisdictions. This mix of technology, politics, and humanitarian need frames the debate going forward.
For stakeholders, the core trade is straightforward: faster, traceable distribution of aid versus legal, reputational, and geopolitical exposure from a privately governed payments system in a contested territory. Decision-makers will need contingency controls, clear escrow arrangements, and transparent governance to mitigate risks.
Whatever next steps occur, the proposal has already altered the conversation about digital finance in conflict zones — shifting it from experimental pilots to urgent policy decisions about how and by whom humanitarian value is tokenized and moved.
Read Our Expert Analysis
Create an account or login for free to unlock our expert analysis and key takeaways for this development.
By continuing, you agree to receive marketing communications and our weekly newsletter. You can opt-out at any time.
Recommended for you
Dakota debuts turnkey stablecoin service to let enterprises embed programmable dollars
Dakota launched a managed stablecoin platform that bundles custody, compliance and settlement so enterprises can embed programmable dollar rails without taking on full bank-like responsibilities. The move joins a wave of providers and exchanges exploring branded, enterprise-focused stablecoin offerings — heightening commercial opportunity but also concentrating regulatory and counterparty risks that customers must weigh.

Payoneer expands stablecoin payments through Bridge partnership
Payoneer is adding on‑platform stablecoin capabilities via a strategic deal with Bridge to let businesses receive, hold and send digital dollars for cross‑border activity. The move complements recent local-payment upgrades in Indonesia and Mexico and targets faster, lower‑cost settlement for exporters and marketplaces.

Trump convenes inaugural Board meeting to marshal Gaza reconstruction
President Trump is chairing the first meeting of a U.S.-led international council to coordinate Gaza stabilization and rebuilding, building on private diplomacy in Geneva that produced a headline $5 billion donor pledge but few binding commitments. Complementary redevelopment concepts floated at Davos and the Geneva talks — framed by private envoys — raise questions about verification, land rights and whether reconstruction will be conditional on phased disarmament and external security control.

UAE-Registered Dollar Stablecoin USDU Debuts, Aims to Make Regulated On‑chain Settlement Real
Universal Digital Intl launched USDU, a dollar-pegged token it says is the first foreign payment token registered under the UAE’s Payment Token Services Regulation. The coin is backed one-to-one by dollar reserves held with regional banks and is positioned to serve as a compliant settlement rail for digital-asset and derivatives trades in the UAE.
OSL Group and Anchorage launch USDGO, a regulated U.S. dollar stablecoin for institutional payments
OSL Group and Anchorage Digital announced USDGO, a federally regulated, fully reserved U.S. dollar stablecoin aimed at institutional settlement and corporate cross-border payments. An initial $50 million was minted on Solana, with the issuer identified as Anchorage Digital Bank N.A. and plans to expand chain support and distribution via licensed OSL entities.
ProShares rolls out ETF to hold stablecoin reserves
ProShares launched an ETF that will hold cash and short-duration instruments used as reserves backing certain stablecoins, creating a regulated on-ramp for investors to access those backing assets. The product arrives amid a broader industry push — from tokenization of money-market funds to new onshore stablecoin launches and other novel ETF filings — that will test U.S. regulatory guardrails and shape institutional adoption.

BBVA joins bank-led push to launch euro stablecoin and reduce dollar dominance
Spain’s BBVA has become the latest major bank to back Qivalis, a consortium building a regulated euro stablecoin to provide a bank-trusted on-chain payment option. The initiative seeks regulatory approval in the Netherlands and aims for a token debut in H2 2026, positioning European banks against dollar-pegged, non-bank stablecoins.
Bundesbank President Nagel backs euro retail CBDC and euro-pegged stablecoins
Bundesbank president Joachim Nagel urged the EU to pursue a retail central-bank digital currency while also supporting regulated euro-pegged stablecoins as complementary tools to secure payments sovereignty. He argued for a wholesale CBDC for programmable settlement between institutions and welcomed private, euro-denominated tokens to lower cross-border costs — a push that now meets parallel momentum from ECB officials and a bank-led stablecoin project.