Tether has signed a Memorandum of Understanding (MOU) with the Government of Georgia, as reported by the firm on June 28.
The “strategic collaboration” is part of a broader vision to position Georgia as a “central hub for peer-to-peer and blockchain technology,” intended to bring about innovation and economic growth in the region.
A flourishing environment for peer-to-peer technology
Paolo Ardoino, CTO of Tether, said the company aims to create a “flourishing environment for peer-to-peer technology usage.” He added:
One of the strategic focuses of this collaboration is fostering the startup ecosystem in Georgia. Tether and the Government of Georgia aim to leverage the country’s favorable working conditions and high quality of life to attract international attention and investment, thereby stimulating startup growth.
Spurring this, Deputy Minister of Economy and Sustainable Development Irakli Nadareishvili mentioned the creation of a local startup development fund – aimed at assisting blockchain technology development while making Georgia a more attractive place to set up. He said:
“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,”
Furthermore, Tether and the Georgian government will work closely with local academic institutions, including BTU, a top technological university in Georgia, to develop educational programs and initiatives. These efforts intend to equip students and professionals with the knowledge and skills required for cryptocurrency industry employment.
Global blockchain movement
Should Tether empower Georgia, it will have competition from several other regions considered pro-blockchain, including El Salvador, Switzerland, Portugal, UAE, and Hong Kong.
Alex Chehade, the general manager of Binance Dubai, claimed the United Arab Emirates (UAE) could become a leading cryptocurrency hub as the firm struggles to navigate the evolving global regulatory landscape.
Chehade pointed out that the UAE provides business certainty, unlike the U.S. or Europe. The U.S. securities regulator sued Binance on June 5. In contrast, the company was forced to scale back its European operations, including withdrawing from Belgium and Dutch markets.
Hong Kong also has its sights on blockchain expansion which web3 ambitions implementing several favorable policies, including opening its Virtual Asset Service Provider license program and fostering better relationships between crypto firms and banks.
El Salvador is famously pro-Bitcoin, while Portugal and Dubai have attracted web3 developers and blockchain companies through progressive legislation. Interestingly, Lugano in Switzerland also partnered with Tether to create its ‘Plan ₿’ initiative. The program claims to have issued over 500 student grants and a 103 million CHF ($114 million) investment pool.
According to the CIA, Georgia has the 104th largest GDP in the world, at around $57.4 billion, with an estimated growth of 10.47% in 2021. Georgia’s real GDP growth rate is only estimated to have been exceeded by thirteen other countries, including El Salvador.
It will be interesting to see if Tether can bring the same success to Georgia as it has with Switzerland as the race for the world’s definitive crypto hub heats up amid regulatory uncertainty in the U.S.
