Tether collaborates with Georgia to launch GELT, a stablecoin linked to the lari, enhancing cross-border trade and reducing transaction costs.
Tether Partners with Georgia to Launch GELT Stablecoin
Tether has announced a strategic partnership with the Government and Central Bank of Georgia to introduce GELT, a stablecoin pegged to the Georgian lari. This initiative marks a significant step in Georgia's ambition to become a prominent crypto hub, leveraging a regulatory framework that aligns with U.S. standards.
The GELT stablecoin is designed to enhance cross-border trade and reduce transaction costs for users, although Tether has clarified that it does not view GELT as a central bank digital currency (CBDC). The introduction of GELT is expected to facilitate faster settlements and lower fees, connecting the traditional banking system with Georgia’s growing digital economy.
Prime Minister Irakli Kobakhidze emphasized Georgia's goal of creating a more connected and digitally empowered financial landscape, as the country prepares for a population of approximately 3.9 million to benefit from this innovation.
Tether, known for its USDT stablecoin with a market capitalization close to $190 billion, aims to expand its influence beyond the dollar. The company has also issued tokens linked to other currencies, such as the euro and British pound, but GELT is notable for receiving government backing.
The National Bank of Georgia has been working for years on a regulatory framework for digital assets, with guidelines on reserve management and oversight, which aligns with the U.S. GENIUS Act. Natia Turnava, President of the National Bank of Georgia, expressed enthusiasm for collaborating with Tether to enhance the country's digital financial infrastructure.
Georgia already allows tax payments in digital assets convertible to local currency and has previously partnered with Ripple to explore a digital version of its national currency. While details about GELT's operations are still unfolding, the stablecoin will not function as a CBDC, distinguishing it from government-regulated digital currencies.
