Natia Turnava: The National Bank has no plans for the widespread issuance and introduction of the digital GEL; furthermore, under no circumstances will digital GEL replace cash GEL
At this stage and in the coming years, the National Bank of Georgia has no plans for the widespread issuance and introduction of a digital lari. In particular, there are no plans for the broad introduction of a so-called retail digital lari, meaning a digital currency held directly by the public. National Bank of Georgia President Natia Turnava made this statement while presenting the draft of the main directions of monetary and foreign exchange policy for 2027-2029 at a meeting of the Finance and Budget Committee.
Responding to a question about whether the digital lari would replace cash, she stated that the digital equivalent would neither replace nor could replace the cash lari, adding that this is guaranteed by the Organic Law, which safeguards banknotes as the physical form of cash.
“Our main objective is to ensure that we do not fall behind leading countries technologically. I will give you examples of several countries where similar technologies are being tested. With the support of the legislature, we have simply obtained the right to conduct so-called pilot programmes, or tests, of various technologies in limited areas. This will allow us to better understand the potential benefits of the digital lari, the challenges it may entail, and how we should address those challenges.
In other words, at this stage, this initiative is intended solely for limited pilot testing. Other countries are proceeding in the same way: some are further advanced, while others are just beginning. The initial stage involves testing technologies, challenges, legislation and opportunities, and we want Georgia to be among these countries.
Digital currency technology is attractive to both businesses and the general public worldwide, and it is already widely used in Georgia as well, because it is faster, often cheaper, and represents the technology of the future.
In this regard, it is hardly surprising that central banks in leading countries are seeking to maintain their leadership and preserve the advantages of official central bank currencies by testing similar technologies themselves before deciding in which areas and to what extent such currencies should be introduced.
I would also like to address the frequently asked questions about the plans and whether this will replace cash. Under no circumstances will the digital equivalent replace or be able to replace the cash lari. This is guaranteed by the Organic Law, which safeguards banknotes as the physical form of cash,” Turnava stated.
