Tether to Increase Presence in Georgia via Investment in Local Firm

Tether, a stablecoin issuer, tweeted on May 31 to declare that the company is making a major investment in CityPay.io, a business that processes payments at more than 600 sites across Georgia.

Tether to Make Georgia’s Payment System More Efficient

By this investment, the platform seeks an enhancement in its exposure in the Republic of Georgia. Tether wants to improve the comfort and efficiency of the Georgian payment system through its strategic investment in CityPay.io. 

Notably, various well-known brands, such as Wendy’s and Radisson Hotels, plus a number of others, use CityPay.io’s payment services.

Georgia to Launch a CBDC?

Back in January, it was reported that the Central Bank of Georgia, also known as the National Bank of Georgia (NBG), was considering launching the pilot phase of its Central Bank Digital Currency (CBDC), known as the Digital Lari. Significantly, the official launch of the Digital Lari trial phase, which was intended for retail consumers, was planned for last year. 

It is noteworthy that despite higher interest rates, Tether allegedly made roughly $1.5 billion in earnings in the first quarter. 

Tether’s Influence on Crypto

According to the financial expert ‘girevik’ who goes by that handle on Twitter, the stablecoin issuer makes money by collecting interest on US Treasury bonds while giving depositors 0%. Therefore, Tether benefits from higher interest rates. 

The impact of Tether’s investment on the wider Bitcoin market is now unknown, although it is expected to increase Bitcoin’s price in the near future. 

Georgia is One of the Most Crypto-Friendly Nations

In the meantime, due to its progressive regulatory environment, Georgia has emerged as one of the most appealing locations for cryptocurrency businesses, drawing various enterprises to start operations there. 

The Georgian government wants to establish itself as a significant international cryptocurrency center by utilizing its competitive advantages. Binance announced the opening of a new blockchain hub in Georgia this March with the objective of growing crypto acceptability in the nation. Binance also worked along with the Georgian Innovation and Technology Agency earlier this year.