The partnership aims to reform both the commercial sector and public administration.
The Georgian government and stablecoin issuer Tether have agreed to work together to build out the peer-to-peer (P2P) and Bitcoin infrastructure in that nation. The Georgian government and Tether will work together strategically to develop the essential framework for a successful startup ecosystem in Georgia.
The joint initiative intends to draw attention and funding from around the world to the emerging decentralized space. The collaboration intends to support the development of P2P technology at the state level and assist in the creation of financial instruments around it. Education on Bitcoin and blockchain technology, the creation of payment infrastructure for businesses, and the creation of a robust, open, and private P2P communication system are some of the important development areas.
Tether stated that the collaboration with the Georgian government will also consider developing and putting in place a robust, independent banking and communication system. In order to do this, it is necessary to promote the adoption of P2P technology-based digital payment and communication systems. Additionally, the current infrastructure must be improved in order to assure its reliability and resilience in supporting blockchain-based solutions. The partnership aims to reform both the commercial sector and public administration.
To advance blockchain technology and promote itself as a nation with a favorable startup culture, Georgia will establish a special fund for local businesses. Deputy Minister of Economy and Sustainable Development Irakli Nadareishvili stated that the joint effort “will contribute to the development of local blockchain technologies in the country, as well as the introduction of companies operating in this sector in Georgia.”
The joint venture in Georgia is not the first for Tether. Many cryptocurrency businesses have collaborated extensively with governments over the years to improve the emerging technology. Collaborations typically result in governments having a greater grasp of the technology, which eventually results in favorable regulation.
The first nation to recognize Bitcoin as legal cash was El Salvador, which chose Bitfinex as its primary partner in exchange technology and gave the exchange the nation’s first digital asset license. Similar to this, Binance, a cryptocurrency exchange, inked an MoU with Kazakhstan in May 2022 and gained government compliance approval a year later.