2 min read
Tether said on Monday that it plans to issue a stablecoin in Georgia with support from the country’s government, underscoring the nation’s aggressive push to establish itself as a crypto hub that’s uniquely aligned with U.S. regulations.
The stablecoin, dubbed GELT, will serve as a digital representation of the Georgian lari, Tether said in an announcement. It described the move as among “the first joint efforts to place a national currency directly onto digital asset rails” under a purpose-built framework.
With a population of roughly 3.9 million people, the country is actively laying the foundation for “a more connected, transparent, and digitally empowered financial world” through GELT, Georgia’s Prime Minister, Irakli Kobakhidze, said in a statement.
The stablecoin is being positioned as a turning point for the region, promising citizens near-instant settlements, lower transaction fees, and a direct bridge between the traditional banking system and Georgia’s growing digital economy.
Tether’s industry-leading stablecoin, USDT, commands a market capitalization of nearly $190 billion. Monday’s notice reflects efforts to extend the stablecoin issuer’s dominance beyond the U.S. dollar: The firm already issues tokens pegged to the price of the euro, British pound, Mexican peso, and gold. Still, none of those tokens carry the explicit endorsement of a sovereign national government or its central bank.
Tether noted on Monday that the Government and National Bank of Georgia had previously spent years crafting a regulatory framework for digital assets, establishing rules that dovetail with those enacted in the U.S. under the GENIUS Act last year. Those include requirements related to reserve management, redemption rights, and issuer oversight.
Georgia already allows residents to pay taxes in digital assets that are converted into the country’s local currency. In 2023, the country’s central bank tapped Ripple to pilot a digital version of Georgia’s national currency using the Ripple CBDC Platform.
“The National Bank of Georgia welcomes collaboration with global innovators like Tether as part of its broader strategy to advance secure, modern, and internationally aligned digital financial infrastructure,” National Bank of Georgia President Natia Turnava said in a statement.
Monday’s notice hints at details to come, but there’s no indication that GELT will function as a central bank digital currency, or CBDC. Unlike stablecoins, which are issued by private companies on public networks, CBDCs are controlled and maintained by their respective governments—sparking financial surveillance concerns among conservatives.
Decrypt-a-cookie
This website or its third-party tools use cookies. Cookie policy By clicking the accept button, you agree to the use of cookies.