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The stablecoin issuer Tether has signed a memorandum of understanding (MoU) with the government of Georgia to develop infrastructure focused on Bitcoin and peer-to-peer networks in the country. The strategic collaboration between the stablecoin issuer and the government of Georgia will focus on building the key infrastructure for a thriving startup ecosystem in Georgia.
The joint efforts of the two parties are aimed at attracting international attention and investment in the emerging decentralized space. The partnership will aim at the prosperity of P2P technology at the state level and help create financial instruments around it. Some of the key development areas include teaching Bitcoin and blockchain technology, building a payment infrastructure for merchants, and developing a sustainable, open and private peer-to-peer communication system.
Paolo Ardoino (CTO, Tether) and Iraqi Nadareishvili (Deputy Minister of Economy and Sustainable Development) signing the MOU for the collaboration between Tether and the Government of Georgia to develop Blockchain, #Bitcoin and Peer-to-Peer Infrastructure. pic.twitter.com/g3LayZxDPX
— Tether (@tether_to) June 28, 2023
Tether said the partnership with the Georgian government will also focus on building and implementing a strong and autonomous financial and communications system. This entails encouraging the adoption of digital payment and communication systems based on peer-to-peer technologies, as well as improving the existing infrastructure to ensure it is robust and reliable in supporting blockchain-based solutions. The alliance intends to make changes in public administration and the business sector.
Georgia will create a special fund for local startups to assist in the development of blockchain technologies and position Georgia as a country with an attractive ecosystem for technology startups. Irakli Nadareishvili, Deputy Minister of Economy and Sustainable Development, said that the joint efforts “will contribute to the development of local blockchain technologies in the country, as well as the representation of companies operating in this sector in Georgia.”
Related: Peer-to-peer cryptocurrency exchanges struggle to navigate the changing legal landscape
Tether’s collaboration in Georgia is not the first, and over the years, not only Tether but many cryptocurrency giants have worked closely with governments to develop the nascent technology. In most cases, collaborative efforts often result in a better understanding of the technology by the respective governments, which ultimately leads to positive regulation.
El Salvador, the first country to make bitcoin legal tender, had Bitfinex as its key technology exchange partner and eventually also granted the exchange its first digital asset license. Similarly, cryptocurrency exchange Binance signed a memorandum of understanding with Kazakhstan in May 2022 and received the country’s compliance approval a year later.
Tether did not respond to Cointelegraph’s requests for comment at the time of posting.