Enhancing the Crypto Regulatory Environment
On April 6th, PMC Research presented the results of its study “Stablecoins in Georgia: International Regulatory Practices and Policy Recommendations for the Georgian Government” and held a public-private discussion thereon.
The research was conducted as part of the “Public Policy Discussion and Dialogue Platform” project, which aims to stimulate dialogue on various issues and foster cooperation between different parties.
Stablecoins are a subset of cryptocurrencies that promise price stability in an otherwise volatile market. In recent years, the crypto industry has widely embraced stablecoins. In 2022, major economies such as the United States and the European Union introduced the most important stablecoins regulations to date. The aims of the study were to analyze the existing legislation surrounding stablecoins in Georgia, and to develop recommendations to improve the regulatory environment for this nascent form of cryptocurrency in the country.
According to the study, the existing stablecoins regulations in Georgia lag significantly behind those of major economies, with the crypto legislation that the country passed in 2022 not comprehensive and leaving some ambiguity as to whether it will even cover stablecoins.
The findings were presented by one of the authors of the study, Ivane Nachkebia, an associate researcher at PMC Research and a policy analyst at DeFi Education Fund. The study was peer-reviewed by Davit Kiziria, a digital technology expert and coordinator of the Digital Transformation Consortium.
The presentation was followed by a panel discussion in which Varlam Ebanoidze (National Bank of Georgia), Giorgi Gurgenidze (Ministry of Economy and Sustainable Development of Georgia (MoESD)), and Sulkhan Jashi (director of “Coinmania”) partook as panelists.
“Timely and reasonable introduction of financial innovations based on Web3, DeFi, smart contracts and blockchain will create new opportunities for Georgian businesses as well as for the country’s global economic positioning. This will be an important factor in the success of the “digital transformation” of the Georgian economy. Crucially, when introducing financial innovations, it is very important to involve all interested parties as much as possible, so that decisions are based on a reasonable synthesis of many perspectives and visions.”said Davit Kiziria
“Stablecoins are among such fintech innovations. Like most blockchain-based crypto assets, they contain many innovative features such as programmability and self-execution. This allows businesses to create new types of economic model,”he added.