Tether and the Government of Georgia announced, today, May 25, plans to launch GEL₮, a stablecoin that will digitally represent the Georgian lari (GEL). This is one of the first joint efforts between a private stablecoin issuer and a sovereign government to directly integrate a national fiat currency into decentralized network infrastructures under a specific regulatory framework.
This project marks a milestone in the evolution of stablecoins by bringing a local sovereign currency to digital rielsbeyond the predominant projects to the US dollar.
Tether, an issuer of USDT with a market capitalization approaching $190 billion, brings large-scale operational experience to this type of initiative.
Stablecoins are increasingly used in payments, settlements, remittances and cross-border transfers, allowing value to be moved in seconds compared to traditional banking systems.
GEL₮ seeks to reduce transaction costs, offer near-immediate settlement, enable programmable payments and improve efficiency in remittances, cross-border trade and digital financial systems. The Georgian authorities hope that boost development fintech and access to modern financial infrastructure in the region.
The initiative builds on years of legislative and regulatory work by the Government and the National Bank of Georgia. The country has established one of the most advanced frameworks in the area for digital assets, with an emphasis on reserves, redemption rights, supervision and regulatory compliance. This approach seeks to align with international standards and, in particular, with the emerging regulation of stablecoins in the United States, such as the GENIUS Act.
Lay the foundation for the new financial future
Georgia already allows payment of taxes through instant conversion of digital assets to local currency, reflecting its position as an advanced jurisdiction. Since 2019, CriptoNoticias has reported on the regulatory advances it has shown in the country in relation to digital assets.
“Together with visionary partners like Tether, Georgia is laying the foundation for a more connected, transparent and digitally empowered financial world,” stated Georgian Prime Minister Irakli Kobakhidze.
For his part, Paolo Ardoino, CEO of Tether, noted: “Stablecoins are no longer a niche financial instrument. They are becoming part of the infrastructure layer for global finance. Georgia has acted early by creating a serious regulatory architecture for digital assets and stablecoins, and that clarity creates the basis for true innovation and adoption.”
Likewise, the President of the National Bank of Georgia, Natia Turnava, indicated: “The National Bank of Georgia welcomes collaboration with global innovators such as Tether, as part of its broader strategy to advance a secure, modern digital financial infrastructure aligned with international standards.”
Although GEL₮ is issued by Tether (a private entity) and not directly by the National Bank, it could be interpreted as an indirect or “hybrid” form of CBDC, since it has official support and promotion of the State to represent the sovereign currency. This could spark debate about the boundaries between private stablecoins and central bank digital currencies. Furthermore, Tether has faced in the past regulatory scrutiny due to issues of transparency and reserve support.
Georgian officials and Tether representatives have highlighted the potential of stablecoins as global financial infrastructure. This case illustrates the trend of governments exploring public-private collaborations to modernize payments without needing to launch a full CBDC. Technical details, booking structure and GEL₮ implementation schedule will be announced in later phases.