Tbilisi Runs on USDT: How Georgia Became a Crypto Payments Capital While Nobody Was Watching

Why Georgia, of All Places

Georgia is a country of 3.7 million people wedged between Russia, Turkey, Armenia, and Azerbaijan. It is not on any list of "crypto hubs" that the industry promotes. It does not have a famous exchange. It did not pass a Bitcoin legal tender law. And yet, adjusted for population, it ranks among the top three countries globally for crypto activity alongside Ukraine and Moldova (Chainalysis 2025).

The reason is not speculation. A Cointelegraph Magazine investigation found that "the vast majority of crypto used in Georgia is not as an investment vehicle but for payments." The most popular assets are USDC and USDT, moved on "faster and cheaper blockchains like Tron and Solana." The use case is remittances and daily commerce, not yield farming.

Remittances account for roughly 16% of Georgia's GDP. The country sits at the intersection of Russian, Turkish, Iranian, and Central Asian money flows. It has been a transit point for capital movement across this region for centuries. Crypto did not create this role. Crypto just made it faster and cheaper.

The Crypto Infrastructure on the Ground

Tbilisi's crypto infrastructure is not theoretical. It is physical and visible.

200+ businesses accept crypto payments via Binance Pay and CityPay, including the Radisson Hotel chain. This is not a vanity metric from a press release. The Cointelegraph investigation visited these businesses and confirmed active crypto acceptance.

~100 crypto ATMs operate in Tbilisi, allowing users to buy or sell USDT, BTC, and ETH for Georgian lari. These are not novelty installations in co-working spaces. They are used daily for fiat on/off-ramping.

Physical crypto-to-cash shops are described by Cointelegraph as filling Tbilisi's streets. These function similarly to informal money exchange offices: walk in, show your USDT balance, receive lari or dollars in cash. Rates are competitive because there are many competing shops.

Licensed exchanges include GeCrypto (which operates via Telegram for rate quotes), AllTrust.me, Bitnet, and Cryptal. These handle USDT-to-lari conversions for both walk-in customers and online transfers.

The Russian (and Ukrainian) Emigre Accelerant

Since 2022, Georgia has absorbed tens of thousands of Russian and Ukrainian emigres fleeing the war and its consequences. Many arrived with savings they could not access through traditional banking: Russian cards were blocked internationally, Ukrainian banks were disrupted, and SWIFT transfers from both countries became unreliable.

The Cointelegraph report noted: "For many Russians and Ukrainians living in Tbilisi, these outlets have been essential for moving their savings abroad after sanctions and currency controls tightened." For Russian tourists whose cards do not work abroad due to sanctions, "crypto is sometimes the only convenient option."

This created a surge in demand for USDT-to-lari conversion services, which in turn built out the infrastructure that now serves the broader population. The crypto-to-cash shops, the ATMs, the merchant acceptance: all of this accelerated because a large population of relatively wealthy, technically literate people arrived and needed an alternative financial system. They built one. And now Georgians use it too.

0% Tax and VASP Licensing

Georgia's crypto regulatory environment is among the friendliest in the world. Key features:

0% capital gains tax on cryptocurrency for individuals. Buy USDT at one price, sell at another, keep the difference without tax liability. This applies to all crypto assets, not just specific tokens.

VASP licensing from the National Bank of Georgia. Exchanges and crypto service providers operate within a regulated framework, providing consumer protection and legal clarity. The licensing requirements are MiCA-aligned, positioning Georgia for compatibility with EU frameworks.

No restrictions on crypto ownership or transfer. Unlike many countries that restrict exchange access, limit transfer amounts, or require special permissions, Georgia places no barriers on individuals holding or moving crypto assets.

This combination (0% tax, regulated exchanges, no restrictions, physical infrastructure) makes Georgia one of the few countries where using USDT for daily payments is not a workaround. It is simply the most efficient option available.

Using USDT in Georgia: Practical Guide

Arriving with USDT: If you hold USDT from abroad, you can convert to lari through any licensed exchange (GeCrypto, AllTrust, Cryptal), a crypto ATM, or a walk-in crypto shop. Rates are competitive. Shop around between 2-3 providers before converting large amounts.

Receiving remittances: Family abroad sends USDT via TRC-20 to your Tron wallet. Convert to lari through any of the channels above. Total cost: 1-3% including the P2P spread, versus 3-5% through traditional remittance services.

Paying with USDT: At the 200+ merchants accepting Binance Pay or CityPay, payment works through the Binance app QR code or CityPay terminal. The conversion to lari happens at point of sale.

Buying USDT in Georgia: Walk into any crypto shop with lari cash, use a crypto ATM, or buy via P2P on Binance/Bybit with a Georgian bank transfer (Bank of Georgia, TBC Bank both work).

The Hidden Cost Nobody Optimises

With all this USDT activity, Tbilisi users are sending TRC-20 transfers multiple times per week: to receive remittances, to pay for services, to move money between wallets and exchanges. Each transfer burns 6.4-13.4 TRX in network fees without Energy.

For someone making 10 TRC-20 transfers per month (a reasonable number for an active user in Tbilisi), that is 64-134 TRX per month burned. With Energy delegation, the same 10 transfers cost roughly 30-40 TRX. The saving is 34-94 TRX per month, or $10-28 at current prices.

Nobody in the Georgian crypto ecosystem is talking about Energy delegation. The crypto shops do not mention it. The ATMs do not optimise for it. The exchange guides do not cover it. It is a genuine information gap in a market with high-frequency USDT usage, and it represents an opportunity for every active Tron user in the Caucasus region.