Tether has recently signed a memorandum of understanding (MOU) with the Georgian government. The goal is to collaborate on building a blockchain peer-to-peer (P2P) platform for the state. The agreement also involves the further development and adoption of blockchain-based products within the state.
Tether (USD₮ or USDT) is an asset-backed cryptocurrency stablecoin. It was launched in 2014 by Tether Limited Inc., a Hong Kong-based company owned by iFinex Inc., which also operates the Bitfinex cryptocurrency exchange. Tether Limited has minted USDT on more than nine different blockchains.
Tether, the largest stablecoin in terms of trading volume and market capitalization, is designed to maintain a value of US$1.00. Tether ensures that it holds US$1 in asset reserves for each USD₮ issued. Notably, Tether is also one of the most actively traded cryptocurrencies worldwide.
According to Tether, the collaboration with Georgia is aimed at establishing the state as a central hub for blockchain development. This partnership is expected to foster innovation and drive economic growth in the region.
Paolo Ardoino, CTO of Tether, emphasized the company’s commitment to the development and adoption of Web3 utilities as a key motivating factor behind their collaboration with Georgia.
“With a deep understanding of the potential of cryptocurrencies, 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.”
During a discussion on the significance of collaboration in the state, Irakli Nadareishvili, the Deputy Minister of Economy and Sustainable Development of Georgia, emphasized that Tether is committed to supporting local companies in the state who are interested in building on the blockchain. To this end, Tether will establish a special startup fund.
Nadareishvili further stated, “We also agreed on cooperation in the educational field regarding blockchain technology, which 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.”
In addition to the expected outcome of the deal between the stablecoin firm and the state, there is also a plan to explore and create an independent communication and financial system for the state of Georgia.
Tether emphasizes that this is important because their partner aims to leverage the transparency and security benefits of blockchain technology for public systems in the state.
Furthermore, Tether and the Georgian government will collaborate with local academic institutions to involve students in understanding how blockchain works.
Tether states that they will develop educational programs and initiatives to empower students and professionals with the knowledge and skills necessary to excel in the cryptocurrency industry.
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