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I'm not Palestinian, so of course take this with a grain of salt, but it just seems to make sense to me to use the currencies of the societies that your people are currently intertwined with, right?
Would forming a new Palestinian currency have any positive impact right now when half the world would refuse to accept it on the basis of there not being a Palestinian state to back said currency?
Yeah, it would be a fuck you, but what would it get Palestine practically?
No internationally recognized state, so unable to back any issued currency. Unbacked currency won't be exchangeable in any country's banks. Palestinians stuck with useless paper they can't spend on anything, while their govt spends resources it doesn't have to print millions of pieces of paper people have no use for.
Stop Israel from murdering them and reinstate their place on the earth. Then we can worry about a fiat currency.