Tbilisi: A Hub for Crypto Payments, Not Speculation
The Crypto Culture in Tbilisi
Tbilisi, the capital of Georgia, is becoming a notable hub for cryptocurrency, but not in the way many might expect. Unlike other places where crypto is seen primarily as an investment, in Tbilisi, it’s used mainly for everyday payments. The city is dotted with numerous small-time crypto exchanges that are essentially money changers with Binance accounts. This practical use of crypto is partly driven by visitors from nearby Russia, who use it for payments because their bank cards don’t work outside Russia due to sanctions.
The city’s crypto culture is vibrant, with many informal meetups held at hostels, bars, and cafes. These gatherings focus on business strategies, trading, and socializing. Tbilisi also hosts various cryptocurrency conferences and hackathons, attracting speakers and guests from around the world. For instance, the Degamefi conference, which focuses on GameFi and decentralized gaming ecosystems, saw about 50% of its speakers coming from outside Georgia.
Projects and Companies in Tbilisi
Tbilisi is home to several local and international cryptocurrency and blockchain projects. Mining giant Bitfury operates in Georgia, drawn by the cheap hydroelectric power. Ripple has been selected as the official partner for Georgia’s central bank digital currency project, the digital lari. Binance has also partnered with the Georgian Innovation and Technology Agency (GITA) to promote blockchain and cryptocurrency education.
Local companies like Bitnet, Arena Games, and crypto payments processor CityPay are active in the city. There are also exchanges like Cryptal, Bybit, Bitget, and WhiteBIT. The Georgian National Blockchain Agency works to implement and adopt blockchain technology in the country, while media firm Crypto Bazari provides advertising, legal, research, and educational services to the blockchain industry.
Despite these activities, Georgia has yet to have its “Skype moment,” a term used to describe Estonia’s rise to tech fame. Many startups focus on local issues and struggle to scale internationally. However, there is optimism that this will change, with new startups emerging from Georgia.
Financial Infrastructure
Georgia’s banking sector is dominated by two large banks: TBC Bank and Bank of Georgia. Both offer user-friendly payment apps that support quick transfers and are integrated with local utility providers and administrative services. It’s rare to find a business in Tbilisi that doesn’t accept card payments.
Despite the ease of existing payment technologies, the government is exploring a digital lari initiative. However, the necessity of this initiative is unclear, given the current convenience of payment options. In addition to online exchanges like Bitnet and Cryptal, Tbilisi has numerous small crypto exchanges where people can buy or cash out crypto. These exchanges had to start complying with Know Your Customer procedures and new regulations from the National Bank of Georgia last year.
Cryptocurrency ATMs are also common in Tbilisi, especially in the city center. These ATMs allow users to purchase major cryptocurrencies like Bitcoin, Ether, and Litecoin, but they do not support cashing out in lari or dollars.
Where Can I Spend Crypto in Tbilisi?
The use of cryptocurrency for payments is becoming more widespread in Tbilisi. Payment services like Binance Pay and CityPay enable over 200 businesses to accept crypto. These businesses include cafes, bookshops, bars, and some restaurants. For instance, Krab Coffee and Bar in the Vera district accepts crypto payments, making it easier for tourists who might face high conversion charges and travel fees.
Crypto-centric establishments have also appeared in Tbilisi, though not all have been successful. Crypto Bar, which allowed patrons to pay for drinks with crypto, closed a few months after opening. Similarly, Crypto Cafe Georgia, which featured crypto symbols on its walls, has also closed.
The Road Ahead
Tbilisi’s crypto scene is unique in its focus on practical applications rather than speculation. The city’s vibrant culture, combined with government support and a growing number of local and international projects, makes it an interesting case study in the global crypto landscape. While challenges remain, particularly in scaling local startups, the potential for Tbilisi to become a significant crypto hub is promising.
