Georgia — Crypto Hub Between East and West: Gold, Energy and Digital Lari | SforNews

GEORGIA — CRYPTO HUB BETWEEN EAST AND WEST: GOLD, ENERGY AND DIGITAL LARI

Diagnosis of the old model and place in the new energy-digital system

INTRODUCTION: BRIEF DIAGNOSIS

Georgia is the least obvious but one of the most interesting points on the map of the new energy-digital system. It is a country that simultaneously serves as:

Georgia’s paradox: it does not have its own surplus of energy, but is a transit corridor for energy resources. It does not mine bitcoin on an industrial scale (hashrate share — less than 1%), but creates one of the most progressive regulatory environments for cryptocurrencies in the region. It found gold — and that changes everything.

Georgia is not building a new system. It is integrating into it — as a bridge between East and West, between energy and digital, between the old world (gold, transit) and the new (CBDC, stablecoins, crypto regulation).

SECTION 1. THE OLD MODEL: WHAT WAS, WHAT BROKE

Georgia’s economic model of recent years has rested on three pillars:

This model works, but is showing cracks.

Growth is there, but inflation is above target. In 2025, Georgia’s GDP grew by 7.5% [1]. In Q1 2026 — 9.1% [1]. The EBRD expects growth of 6% in 2026 [1]. But inflation in April 2026 reached 5.9% — above the 3% target [1].

Debt is low, but dependence is high. Georgia’s government debt — 33.5–34% of GDP — is one of the lowest in the region [1]. The budget deficit is 2.5% of GDP [1]. But the economy is highly dependent on external factors: tourism, transit and remittances could collapse under any geopolitical shock.

Energy vulnerability. Georgia imports more than 1.1 billion kWh of electricity in the first four months of 2026 [2]. The main supplier is Russia (748 million kWh) [2]. This creates a dependency that cannot be ignored.

The map (transit, tourism, remittances) reflects the territory, but the territory is changing. Georgia can no longer rely only on old sources of income. It needs something new — and it has found it.

SECTION 2. ENERGY PROFILE: WHAT EXISTS, WHAT DOESN’T

Georgia is not an energy giant, but a strategic player.

What exists	What doesn’t
Transit oil and gas pipelines (Baku–Tbilisi–Supsa, Baku–Tbilisi–Ceyhan, South Caucasus Pipeline) [8]	Own surplus of electricity — imports are growing [2]
Renewable potential (hydro) — hydropower provides the bulk of generation	Stable baseload — depends on weather and imports
Agreement with Azerbaijan to resume the Baku–Supsa oil pipeline [8]	Energy sovereignty — 1.1 billion kWh imported in 4 months [2]

Key fact: Georgia is a transit country. Energy from Azerbaijan and Central Asia flows through it to Europe. But Georgia itself imports electricity — and mostly from Russia [2]. This creates a unique situation: the country is a bridge for energy, but not a producer.

In May 2026, Georgia and Azerbaijan signed an agreement to resume the Baku–Tbilisi–Supsa oil pipeline, which had been suspended for three years [8]. This will strengthen Georgia’s transit function and increase transit revenues [8].

Result: Georgia cannot physically provide itself with energy, but can earn from its transit. And it has found a new resource — gold, which could become the basis of a new economic model.

SECTION 3. NEW GOLD: GEORGIA BECOMES A KLONDIKE

This is the main news of 2026 for Georgia.

On 12 June 2026, the VicePresident of the Georgian Academy of Natural Sciences, Sandro Tvalchrelidze, announced the discovery of a new large gold deposit — comparable to the “Madneuli” deposit, which is considered the largest in the country [0].

The numbers speak for themselves:

What is “Madneuli”? It is a goldcopperbaritepolymetallic deposit in the Bolnisi municipality, Kvemo Kartli region. Currently, industrial gold mining is carried out in five municipalities in the east of the country [0].

Who owns it? The mines are operated by four affiliated companies: JSC “RMG Copper”, LLC “RMG Gold”, LLC “RMG Auramine” and LLC “Caucasian Mining Group”. Another 16 licenses belong to 11 companies [0].

Architectural meaning: Gold is an old asset that becomes a new resource for Georgia. In a world where the dollar is losing trust and central banks (especially China) have been buying gold for 20 consecutive months, the new deposit gives Georgia a strategic advantage. It becomes not just a transit country, but a producer of a global reserve asset.

Georgia’s paradox: it finds gold precisely at the moment when the world is transitioning to a new energydigital system. Gold is a bridge between the old system (fiat, reserves) and the new (bitcoin, digital assets). Georgia could become both a gold miner and a crypto hub.

SECTION 4. POSITION ON MINING AND CRYPTOCURRENCIES

Here lies Georgia’s main paradox.

Actual situation: mining is popular in Georgia due to low electricity tariffs, especially in highland regions where energy is subsidised by the state [3]. But the hashrate share is less than 1%.

Problem: illegal mining. In June 2026, the Georgian government announced a crackdown on illegal mining [3]. The state loses at least 20–25 million lari ($9.5 million) per year from illegal mining [3]. In the Svaneti mountain region, largescale raids began — violators face up to 3 years in prison [3].

Solution: the government will install electricity meters in all villages of Mestia. For local residents, electricity will remain free within a set limit [3].

But Georgia is a regulatory leader.

Georgia’s paradox: it fights illegal mining but creates one of the most progressive regulatory environments for cryptocurrencies in the region. It does not produce bitcoin, but attracts crypto companies. At the same time, three of the 14 crypto platforms that fell under the EU’s 21st sanctions package are based in Georgia [7]. The National Bank of Georgia stated that these companies do not have a license and are not under its supervision [7].

SECTION 5. POSITION OF THE NATIONAL BANK OF GEORGIA (NBG)

The National Bank of Georgia is one of the most progressive central banks in the region. It is not trying to “save” the old system — it is building a new, parallel one.

Instruments:

Why isn’t the rate cut? Inflation remains above target. Price growth accelerated due to higher costs of imported petroleum products amid the Middle East crisis [4]. Analysts expected policy easing from spring 2026, but the NBG tightened it on 6 May 2026, raising the rate for the first time in two years from 8% to 8.25% [4].

New element: digital lari and stablecoins.

Georgia has chosen a dual strategy:

As MEXC News notes, Georgia may face a “threerail” reality: public CBDC (digital lari), private stablecoin (GELT) and USDT for trading and crossborder flows [6].

NBG’s paradox: it regulates crypto, but does not control illegal mining. It creates a digital lari, but at the same time allows a private stablecoin. It follows FATF and Moneyval standards [7], but three crypto platforms based in Georgia came under EU sanctions [7].

SECTION 6. ARCHITECTURAL CONCLUSION: WHAT PATH IS AVAILABLE TO GEORGIA

Georgia is the only country that simultaneously:

Unlike Europe, Georgia did not shut down nuclear power or abandon fossil fuels. It has no ideological barriers — only pragmatism.

Unlike China, Georgia is not building a state digital currency as a weapon. It uses a hybrid model: CBDC + private stablecoin.

Unlike the US, Georgia is not accumulating bitcoin as a strategic reserve. It is accumulating gold — and that is its main trump card.

Unlike Russia, Georgia has no cheap energy, but it has transit and gold. It does not mine — it trades and extracts.

Georgia’s weaknesses:

Main conclusion:

Georgia will not “import bitcoin” like Europe. It has gold — the oldest reserve asset. It has transit — access to energy flows. It has digital lari and GELT — access to the new digital economy.

Bitcoin for Georgia is not an “energy coupon” or a “strategic reserve”. It is an integration tool — a way to fit into the global system without losing sovereignty. Georgia is becoming a bridge between the old system (gold, transit) and the new (CBDC, stablecoins, crypto regulation).

The question is not whether Georgia will use bitcoin. The question is whether it can become a link between the two worlds — and profit from it.

CONCLUSION: HOW GEORGIA FITS INTO THE GLOBAL TRANSITION

Georgia is neither an architect, nor a victim, nor a beneficiary of the transition. Georgia is a bridge.

Europe will become an eternal importer of bitcoin — because it has no energy.

China is building parallel infrastructure — because it has a strategy.

The US is trying to maintain dominance through bitcoin reserves — because the dollar no longer works.

Russia could become an energy sovereign — if it finds a strategy.

Japan is building nothing — it is watching.

Georgia is building a bridge. It connects East and West, energy and digital, gold and cryptocurrencies. Its path is not a path of domination, but a path of integration. And in a world that is fragmenting into currency blocs and energy clusters, this may be the most profitable strategy.

Global meaning: Georgia shows that even a small country without its own energy can find a place in the new system — if it has resources (gold), position (transit) and strategy (digital lari, stablecoins, crypto regulation). Georgia will not be the leader of the new system. But it can become an indispensable link between its parts.

LIST OF SOURCES

[0] Georgia becomes the new Klondike? — Spress.ge, 12 June 2026
[1] IMF Executive Board Concludes 2026 Article IV Consultation with Georgia — IMF, 10 June 2026
[2] How much electricity was consumed in Georgia? New data — Sputnik Georgia, 11 June 2026
[3] Georgia announces fight against illegal mining — Interfax, 1 June 2026
[4] National Bank of Georgia keeps refinancing rate at 8.25% — Finmarket, 29 July 2026
[5] Georgia’s economy remains resilient despite global uncertainty — Georgia Today, 11 June 2026
[6] The National Bank of Georgia is advancing its Digital Lari pilot — KuCoin, 28 June 2026
[7] National Bank: Sanctioned crypto companies not licensed by NBG — Georgia Today, 24 July 2026
[8] Irakli Kobakhidze: Agreements signed in Azerbaijan are unprecedented for Georgia — Baku.ws, 21 May 2026

NEXT ARTICLE IN THE SERIES: “BRICS+ and gold: the alternative contour of global liquidity.”

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