Stablecoin giant Tether to issue official stablecoin with Georgian government support

Tether, the world's largest stablecoin issuer, announced today that with the support of the Georgian government, it plans to issue a stablecoin representing the Georgian currency, becoming one of the first collaborative cases to introduce a national currency into a digital asset platform. According to Reuters, Tether's new stablecoin project is unique because it is launched through a partnership between a private company and a government. Tether did not elaborate on the nature of this collaboration or whether its so-called 'official' stablecoin is equivalent to a central bank digital currency. Tether stated that the stablecoin, named GELT, will be a 'digital representation of the Georgian Lari,' with details regarding its architecture, launch, and implementation to be announced at a later date. Tether pointed out that the stablecoin project is intended to support cross-border trade, the development of fintech, and digital payments. Stablecoins are cryptocurrencies pegged to fiat currencies. Most are used for cryptocurrency trading and have not yet been widely accepted as a payment tool. The Bank for International Settlements (BIS) has previously warned that privately issued stablecoins could pose a threat to financial stability and monetary sovereignty.