Stablecoin Could Help Rebuild Gaza's Economy

The Palestinian financial system is facing significant challenges, including a lack of trust in the Israeli shekel and a reliance on unregulated cryptocurrency markets.

A recent report by the Atlantic Council suggests that a regulated digital payment instrument, such as a stablecoin backed by the US dollar, could play a useful role in the near term.

The use of dollars is already widespread in Gaza, with approximately $4 billion in surplus shekels held in Palestinian banks and international organizations sending dollars directly to the region.

A regulated, dollar-backed stablecoin could provide a more reliable payment mechanism during reconstruction and help create conditions for greater financial autonomy over time.