Use of Crypto for Payments in Tbilisi, Georgia
Overview of Crypto in Tbilisi
Tbilisi, the capital of Georgia, is home to numerous crypto startups and crypto ATMs. The city is dotted with small-time “crypto exchanges” that function as money changers with Binance accounts. Due to sanctions, visitors from Russia often use crypto for payments here, as their bank cards don’t work outside Russia. Despite the convenience of electronic payments in Tbilisi and the government’s digital lari CBDC plan, at least 200 businesses in the city accept crypto at the point of sale.
Historical Context
Tbilisi’s founding is steeped in legend, with its origins linked to King Vakhtang I of Iberia, who, in the 5th century, decided to establish a city after his falcon fell into a sulfurous hot spring. By the 12th century, Tbilisi became the capital of a unified Georgian state under King David IV.
Over the centuries, Tbilisi has seen a complex history of occupation and rivalry involving the Romans, Seljuks, Persians, Muslim Arabs, the Russian Empire, and the Soviet Union. As a key point along the historic Silk Road, Tbilisi has always been an international city, attracting travelers and traders from Europe and Central Asia.
Today, Tbilisi’s population includes ethnic Georgians and significant communities from Russia, Azerbaijan, Armenia, and Ukraine. The city also attracts digital nomads due to its easy visa regime, low tax rates, and relatively low cost of living.
Crypto Culture in Tbilisi
In Georgia, the primary use of cryptocurrency is for payments rather than investments. Cryptocurrencies like USDC and USDT are particularly popular for remittances due to their speed and low fees on blockchains like Tron and Solana. Giorgi Tushurashvili, the chief marketing officer at Bitnet, highlights the use of USDC for various transactions, including buying apartments and making payments.
Tbilisi hosts informal crypto meetups at various venues, where enthusiasts discuss business strategies, trading, and socialize. The city also holds cryptocurrency conferences and hackathons, attracting keynote speakers from around the world. Marie Giorgobiani, CEO of Degamefi, notes that half of the conference speakers last year were from outside Georgia.
The Georgian government supports the cryptocurrency industry through initiatives such as the Georgian Innovation and Technology Agency (GITA), which offers grants to blockchain and crypto firms. However, regulators are still grappling with a full understanding of the sector, presenting challenges for the industry.
Key Projects and Companies
Several significant crypto and blockchain projects operate in Tbilisi. Mining giant Bitfury has established operations in Georgia, leveraging the country’s cheap hydroelectric power. Ripple is the official partner for Georgia’s central bank digital currency (CBDC) project, the digital lari, while Binance collaborates with GITA to promote blockchain education.
Local companies include Degamefi, Bitnet, Arena Games, CityPay, and exchanges like Cryptal, Bybit, Bitget, and WhiteBIT. Organizations like the Georgian National Blockchain Agency and media firm Crypto Bazari also play vital roles in the ecosystem.
Despite the activity, Tushurashvili points out that Georgia has yet to experience a breakthrough moment akin to Estonia’s “Skype moment.” However, he remains optimistic about the future potential for innovative startups in Georgia.
Financial Infrastructure
Georgia’s banking sector is dominated by TBC Bank and Bank of Georgia, both offering user-friendly payment apps integrated with local services. The widespread acceptance of card payments in Tbilisi, even in small businesses, sets a high bar for crypto adoption.
Crypto ATMs and small crypto exchanges are common in Tbilisi, providing residents with easy access to buy and sell cryptocurrencies. However, the government’s digital lari initiative raises questions about its necessity given the existing robust payment infrastructure.
Spending Crypto in Tbilisi
Cryptocurrency payments are becoming more common in Tbilisi, facilitated by services like Binance Pay and CityPay, which integrate with point-of-sale terminals. Tushurashvili estimates that over 200 businesses accept crypto payments, including hotels, cafes, and bars.
Krab Coffee and Bar in Tbilisi’s Vera district recently began accepting crypto. The owners, Kristina and Barbie, explain that crypto payments are practical and cheaper for tourists who face high conversion charges with traditional cards. The bar uses a payment solution that converts crypto to lari
