Byline: Hannah Parker
Tether, a stablecoin issuer, has signed a memorandum of understanding (MoU) with the government of Georgia to develop Bitcoin (BTC) and peer-to-peer (P2P) infrastructure in the country. This partnership between Tether and the Georgian government will focus on building critical infrastructure for a thriving startup ecosystem in the country. The collaboration intends to bring changes to public administration and the business sector.
On June 28th 2023, Tether signed an MoU with the government of Georgia to develop the country’s blockchain, BTC and P2P infrastructure. Georgia aims to be a hub for P2P and blockchain technology. The signing of the MoU highlights the commitment of the stablecoin operator to advancing technology and seeks to foster a thriving startup ecosystem and attract international attention and investment.
Tether took to their social media page to announce the collaboration and posted, “Exciting news! #Tether and the government of Georgia are teaming up to make Georgia a global powerhouse in #bitcoin, peer-to-peer communications, and blockchain technology.” The stablecoin issuer also posted a photo during the signing of the MoU.
Views About the Collaboration
CTO of Tether, Paolo Ardoino, highlighted the company’s commitment to advancing global strategies and diversifying offerings beyond stability. Ardoino said, “Tether aims to empower cities and facilitate the adoption of blockchain technologies such as Bitcoin as well as peer-to-peer technology solutions such as Keet and Holepunch”. He added that “the collaboration intends to bring changes to public administration and the business sector by focusing on creating a conducive environment for decentralised solutions and technology startups”.
Deputy Minister of Economy and Sustainable Development Irakli Nadareishvili said, “The collaborative 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. With this system, Georgia might emerge as a country with an attractive ecosystem for technology entrepreneurs.” Nadareishvili also mentioned that the collaboration would serve as a vital incentive to fuel the growth of the local startup ecosystem, adding that “a dedicated fund will be established to push the development in the blockchain arena”. The Deputy Minister emphasised that it would facilitate investments and grants for bidding firms developing blockchain-based services.
MoU Between Tether and Georgia
The initiative intends to help the local startup ecosystem and foster international collaborations. If the partnership succeeds, cooperation and support from foreign entities will accelerate entrepreneurial ventures and innovations. With this MoU, Tether and Georgia would explore the possibilities for developing a robust and independent communication and financial system. The initiative will include adopting digital payment and communication systems based on P2P technologies and using blockchain technology to transform public administration and the private sector to deliver effective and reliable customer services.
According to the MoU, both parties will work closely with local academic institutions to empower students and professionals with the skills required to excel in the crypto industry. On May 24th 2023, Tether and Business and Technology University (BTU) signed an MoU to foster blockchain education. BTU is one of Georgia’s top technological universities and research centres to develop educational programs and initiatives. The course includes eight lectures from local and international blockchain experts, guest lecturers, and a project at the end of the program. As for international speakers, they will perform their introductory lectures in English, with most of the courses delivered in Georgia.
Paolo Ardoino emphasised the collaboration with BTU to help foster the next generation of blockchain experts. Rector of BTU Professor Nino Enukidze noted, “Our collaboration with Tether is an important step towards developing a blockchain education ecosystem in Georgia”. Enukidze added, “We believe this collaboration will create opportunities for our students to learn from industry experts and gain practical skills that will enable them to contribute to developing the digital economy”.
Similar Initiatives
This collaborative effort by Tether in Georgia is not its first. Several crypto companies have worked closely with governments to advance nascent technology in recent years. In most cases, collaborations translate into a better understanding of the tech by governments, eventually leading to positive regulation. On May 25th 2022, experts at Cryptominded mentioned that Binance signed an MoU with Kazakhstan to further crypto adoption and law. The MoU was signed during Binance CEO’s official visit to the country. Changpang Zhao met with Kazakhstan President Kassym-Jomart Tokayev, First Deputy Chief of Staff Timur Suleimenov and the Minister overseeing the country’s digital innovation strategy Bagdat Musin.
On April 11th 2023, Bitfinex Securities received a digital asset service provider licence in El Salvador under El Salvador’s new Digital Assets Issuance Law. Making Bitfinex Securities the world’s first international digital asset platform receives approval. Chief Technology Officer of Bitfinex Paolo Ardoino noted, “The licence will allow Bitfinex Securities to facilitate the issuance and secondary trading of assets with clearly defined rights and obligations as outlined in the new digital asset regulatory regime”.
By joining forces, Tether and Georgia’s government in the MoU seek to foster innovation, promote Georgia as a global leader in Bitcoin and peer-to-peer technologies and attract firms and professionals to the country. The collaboration between both parties aims to ignite a revolution of innovation and economic growth by creating a flourishing environment for technology usage and investment in Georgia.