Tether, the company behind the popular USDT stablecoin, has recently signed a memorandum of understanding (MOU) with the government of Georgia, aiming to establish the country as a hub for peer-to-peer and blockchain technology. While the MOU serves as a formal agreement between Tether and the Georgian government, it does not carry the legal obligations of a contract. However, it signifies Tether’s ambitions and sets the foundation for collaboration.
As part of the collaboration, Tether plans to establish a fund to support local startups in developing blockchain technologies. The announcement, however, does not provide specific details regarding the fund’s size or how it will be utilized. Interestingly, the partnership is not limited to supporting local startups but also seeks to foster international collaborations, although Tether’s direct benefits from the deal are not entirely clear.
According to Irakli Nadareishvili, Georgia’s Deputy Minister of Economy and Sustainable Development, the collaboration also includes cooperation in the educational field, specifically regarding blockchain technology. This educational focus aims to contribute to the development of local blockchain technologies in Georgia and facilitate the entry of companies operating in this sector into the country.
Notably, this is not the first partnership between Tether and Georgia. Last month, Tether announced a collaboration with Georgia’s Business and Technology University (BTU) for educational purposes, further emphasizing the company’s interest in the country.
The successive partnerships suggest that Tether has garnered favor with the Georgian government. However, it raises questions about potential biases and favoritism in policy-making when economies heavily rely on investment from a particular industry. While countries like Ireland, with significant investments from tech giants like Facebook and Amazon, have shown a tech-friendly approach, Georgia’s situation as a smaller country outside a larger bloc may make it more susceptible to corporate influence.
Tether’s ambitions extend beyond Georgia. The company recently announced a $1 billion investment in the world’s largest Bitcoin mining site in El Salvador. With analysts predicting that Tether could become one of the most profitable companies in the United States this year, surpassing even asset manager BlackRock, it is clear that the company has substantial resources at its disposal.