Tether to launch 'official' stablecoin in Georgia, with government support

Tether, the world's biggest stablecoin issuer, plans to launch a crypto token representing the Georgian lari with the support of Georgia's government, the company said on Monday, in the latest sign of the country's pro-crypto approach.

Tether's new token is unusual in being launched by a private company in partnership with a government, ‌although Tether did ⁠not detail ⁠the nature of the partnership, or whether what it called the "official" stablecoin amounted to a ​central bank digital currency.

Georgia's Prime Minister Irakli Kobakhidze, head of the central bank, Natia Turnava, and a member of parliament, Vakhtang Turnava, were quoted in Tether's statement expressing support for Tether and financial innovation more broadly, but did not refer to the token directly.


A government spokesperson directed Reuters to the ⁠member of ‌parliament, who did not immediately respond to written questions about ​the government's ​involvement in the stablecoin. Georgia's central bank did not immediately ⁠respond to an emailed request for comment.

Tether said the token will be a "digital representation of the Georgian lari," called GELT, with details on its structure, rollout and implementation to be announced later. It aims to support cross-border commerce, the development of fintech and digital payments, Tether said.

Georgia, a South Caucasus country of 3.7 million, is among the world's top miners of cryptocurrency. Tether said the launch is a result of the ‌National Bank of Georgia's stablecoin rules making the country attractive to digital asset businesses.

Stablecoins are a type of cryptocurrency pegged to a ​fiat currency. They ​are mostly used ⁠in crypto trading, and not widely accepted as a means of payment.

The Bank for International Settlements has warned that privately-issued stablecoins pose a threat to financial stability and monetary sovereignty.

El ​Salvador-based Tether says it has nearly $190 billion of its dollar-pegged token in circulation. Its token pegged to the Mexican peso has less than $20 million worth in circulation and Tether announced it would wind down a token pegged to the offshore Chinese yuan due to low demand.