Tether cooperates with the government of Georgia: what are the company's goals?

Tether cooperates with the government of Georgia: what are the company's goals?

Tether, the company behind the leading stablecoin USDT, has signed a memorandum of understanding with the government of Georgia. This collaboration is not the first time that Tether has cooperated with governments. But what goal is the company pursuing with this?

According to the press release, the “strategic collaboration” aims to make Georgia a hub for peer-to-peer and blockchain technologies. This includes promoting P2P technologies such as Keet and Holepunch, as well as supporting startups and the entire startup ecosystem in Georgia. Tether also plans to set up a special fund to support local startups and help the education sector train blockchain and P2P professionals. Furthermore, Tether and the government want to promote the development and use of a “robust and independent communications and financial system”. The inherent transparency and security of blockchain systems are intended to transform public services and the private sector.

However, the explanation remains very vague and open-ended. No specific plans, funding or collaborations are mentioned. It seems as if Tether and the government of Georgia have only agreed to work together in the blockchain and P2P space.

This nebulous announcement has left many crypto media confused as they don't know exactly what to make of it. There is speculation about what benefits Tether will gain from this project and whether it will bring the company closer to shadow government status.

A possible explanation can be found in the press release itself. The partnership between Tether and the Georgian government underlines “Tether’s commitment to its global strategy to build resilient cities and nations.” By partnering with cities and nation-states like El Salvador, Uruguay and now Georgia, Tether is creating havens that are protected from regulatory pressure. The ideal safespaces for Tether appear to be second world countries that are politically stable and have natural resources to enable Bitcoin mining. Cities like Lugano also fit this profile. Tether works so closely with cities and governments that the company can already be described as a transnational body.

Another interesting aspect is the wording of the press release. Instead of “Bitcoin and cryptocurrencies,” Tether speaks of “blockchain and peer-to-peer.” Georgia appears to be the first step in a strategic repositioning of Tether. The previously unknown apps Holepunch and Keet are mentioned again and again. Holepunch is a platform for P2P apps without servers, while Keet is a decentralized and fully encrypted communication tool. Both are supported by Tether and the Bitfinex exchange.

Supporting P2P technologies can help Tether evade regulation and avoid data leaks like those that surfaced in a lawsuit against the company.

The connection to Georgia also suggests a third explanation: Tether is trying to become indispensable to the US government. Georgia is very important geopolitically and has a complex relationship with Russia. By promising to build a resilient communications and financial infrastructure in Georgia, Tether can protect the country from attacks and stabilize it in the event of a possible collapse by Russia.

One factor not explicitly mentioned in this scenario is the Tether dollar USDT. Tether has been acting as a kind of shadow central bank for the dollar for some time, bringing the greenback's shadow electronic currency to places where it has previously struggled: to the edges of the Soviet world, to the borders of China and Russia, to international money transfers from the United States to Latin America, or to countries like Myanmar and inflation-plagued Lebanon.

Tether dollars are the key to hyperdollarizing the world. As Tether expands its dollar empire to the borders of Russia and beyond, the company is becoming increasingly valuable to the US government.