The National Bank of Georgia (NBG) has no plans to introduce the digital lari on a full scale in the near future and will instead conduct pilot projects to assess its potential benefits, costs, risks and technological challenges. Davit Utiashvili, head of the NBG’s Financial Stability Department, said the trials would help determine how potential risks could be mitigated before any further decisions are made.
Utiashvili noted that research into central bank digital currencies is becoming common internationally as digital technologies reshape the financial sector. He said a digital currency issued by a central bank could offer greater stability and appeal than privately issued digital assets such as USDT and USDC, which are already used in Georgia for exchange transactions and international transfers.
The legal framework for issuing a digital lari was established through amendments to Georgia’s Organic Law on the National Bank, approved by Parliament last week. Under the changes, only the NBG will have the authority to issue digital versions of the national currency. The digital lari will represent an unconditional liability of the central bank at its nominal value, with the NBG responsible for controlling the money supply and determining issuance plans.
The legislation also prohibits issuing digital lari directly to finance the state budget deficit. Despite the new legal framework, the NBG has reiterated that it does not intend to launch the currency nationwide in the coming years. For now, the initiative remains at the pilot stage, with any future rollout dependent on the results of assessments into its feasibility, security and economic impact.
