Tether Plans Stablecoin Launch in Georgia With Government Support

Tether has announced plans to launch a new token linked to Georgia’s national currency, the lari. The company has said that the project is being developed with support from authorities in Georgia. Stablecoins are digital assets designed to maintain a stable value by being pegged to traditional currencies or other assets, such as the dollar. They are usually used in crypto trading and digital payments due to lower price volatility.

Georgia’s Push Into Stablecoins

The proposed token, called GELT, will function as a digital representation of the Georgian lari. According to Tether, it will support cross-border payments, fintech development, and digital transactions in the country.

According to Reuters, Tether’s new token is unusual because it involves collaboration between a private company and a government. However, the company has not detailed the nature of the partnership or clarified whether the official Stablecoin would function as a central bank digital currency (CBDC).

In a statement, Tether said that Georgia’s Prime Minister Irakli Kobakhidze, National Bank of Georgia head Natia Turnava, and member of parliament Vakhtang Turnava have expressed support for financial innovation and the broader development of the crypto sector. However, they did not directly comment on the proposed token.

Georgia is among the world’s notable centres for cryptocurrency mining. Tether further said that the planned launch comes in the backdrop of the National Bank of Georgia’s Stablecoin regulations, adding that the rules have made the country more attractive to digital asset firms.

India’s Cautious Approach to Stablecoins

India remains a regulatory grey zone for Stablecoins. Though Stablecoins are not banned, they are not recognised as legal currency either by the Reserve Bank of India (RBI). Instead, Stablecoins are treated as virtual digital assets (VDAs) for taxation and compliance purposes with standard crypto tax rules applying to transactions.

The Reserve Bank of India (RBI) has also taken a cautious approach towards Stablecoins. It has raised concerns over potential risks to monetary policy, even as India continues to expand its digital rupee pilot project.