Crypto Payments in Tbilisi: A Practical Approach
History of Tbilisi and its Crypto Scene
Tbilisi, the capital of Georgia, has always been a city of strategic importance. Founded in 445, legend has it that the city was established by King Vakhtang I of Iberia after his falcon fell into a hot spring. The location’s hot springs and strategic advantages led to the clearing of the forest and the founding of the city. Over the centuries, Tbilisi has seen invasions and occupations by Romans, Seljuks, Persians, Muslim Arabs, the Russian Empire, and the Soviet Union. Despite these tumultuous events, it has remained an international hub along the historic Silk Road, attracting traders and travelers from Europe and Central Asia. Today, it is home to a mix of ethnic Georgians and significant communities from Russia, Azerbaijan, Armenia, and Ukraine.
Crypto Culture in Tbilisi
In Tbilisi, cryptocurrency is primarily used for payments rather than as an investment vehicle. The ease of electronic payments in the city poses competition for crypto, but at least 200 businesses accept crypto at point of sale. Remittances are a popular use case, especially with stablecoins like USDC and USDT, which are favored for their speed and low transaction costs on blockchains like Tron and Solana.
Local cryptocurrency exchange Bitnet’s CMO, Giorgi Tushurashvili, highlights that USDC is widely used for remittances, paying for apartments, and other purposes. The city also hosts informal crypto meetups at various venues like hostels, bars, and cafes. These gatherings discuss everything from business strategies to trading.
Marie Giorgobiani, CEO of Degamefi, a conference focusing on GameFi and decentralized gaming ecosystems, notes that about 50% of the speakers at their events are from outside Georgia. The Georgian government is also taking steps to support the cryptocurrency industry through the Georgian Innovation and Technology Agency (GITA), which provides grants to startups.
Financial Infrastructure and Regulatory Environment
Georgia’s financial infrastructure is robust, with the commercial banking sector dominated by TBC Bank and Bank of Georgia. Both banks offer user-friendly payment apps that support quick transfers and are integrated with local utility providers and administrative services. The ease of use of these payment technologies sets a high bar for crypto to meet.
The government is researching the design of a digital lari, although its necessity is questioned by some experts like Tushurashvili. The city is also dotted with small-time crypto exchanges and ATMs that support major cryptocurrencies like Bitcoin, Ether, and Litecoin.
Crypto Projects and Companies in Tbilisi
Tbilisi hosts various local and international cryptocurrency and blockchain projects. Mining giant Bitfury operates in Georgia, taking advantage of the cheap hydroelectric power. Ripple is the official partner for Georgia’s central bank digital currency project, and Binance has signed an agreement with GITA to promote blockchain education.
Local companies include:
- Degamefi
- Bitnet
- Arena Games
- CityPay
- Cryptal
- Bybit
The Georgian National Blockchain Agency works to implement and adopt blockchain in Georgia, while media firm Crypto Bazari offers advertising, legal, research, and educational services to the blockchain industry.
Despite the activity, experts believe Georgia has yet to have its “Skype moment,” a breakthrough akin to Estonia’s success with Skype. However, there is optimism that new startups will emerge from Georgia.
Where Can I Spend Crypto in Tbilisi?
Cryptocurrency payments are becoming more widespread in Tbilisi, facilitated by payment services like Binance Pay and CityPay. These services integrate with point-of-sale terminals or use simple QR code scans, making it easy for businesses to accept crypto. Over 200 companies in the city accept crypto, including cafes, bookshops, bars, and restaurants.
Krab Coffee and Bar in the Vera district recently started accepting crypto payments. The owners, Kristina and Barbie, find it practical as it eliminates conversion charges and travel fees for customers. It also makes payments easier for Russian tourists, who face sanctions that prevent their bank cards from working outside Russia.
Novelty crypto establishments like Crypto Bar and Crypto Cafe Georgia have also appeared but have struggled to sustain long-term success. Despite these challenges, the city’s crypto culture continues to grow, attracting digital nomads and fostering a community of crypto enthusiasts.
