Tether, the world's biggest stablecoin issuer, plans to ​launch a crypto ⁠token representing the Georgian lari with the support of Georgia's government, the company said ‌on Monday, in the latest sign of the country's pro-crypto approach.

Tether's new token is unusual in ​being launched by a private company in partnership with a government, although Tether did not detail the ​nature of ​the partnership, or whether what it called the "official" stablecoin amounted to a central bank digital currency.

Georgia's Prime Minister Irakli Kobakhidze, head of the central bank, Natia ⁠Turnava, and a member of parliament, Vakhtang Turnava, were quoted in Tether's statement expressing support for Tether and financial innovation more broadly, but did not refer to the token directly.

A government spokesperson directed Reuters to the member of parliament, who did not immediately ​respond to ‌written questions about the ⁠government's involvement in ⁠the stablecoin. Georgia's central bank did not immediately respond to an emailed request for comment.

Tether said the ​token will be a "digital representation of the Georgian lari," called ‌GELT, with details on its structure, rollout and implementation ⁠to be announced later. It aims to support cross-border commerce, the development of fintech and digital payments, Tether said.

Georgia, a South Caucasus country of 3.7 million, is among the world’s top miners of cryptocurrency. Tether said the launch is a result of the National Bank of Georgia's stablecoin rules making the country attractive to digital asset businesses.

Stablecoins are a type of cryptocurrency pegged to a fiat currency. They are mostly used in crypto trading, and not widely accepted as a means of ‌payment.

The Bank for International Settlements has warned that privately-issued stablecoins ⁠pose a threat to financial stability and monetary sovereignty.

El Salvador-based ​Tether says it has nearly $190 billion of its dollar-pegged token in circulation. Its token pegged to the Mexican peso has less than $20 million worth in circulation and Tether announced it ​would wind down ‌a token pegged to the offshore Chinese yuan due to ⁠low demand.

(Reporting by by Elizabeth Howcroft ​in Paris, additional reporting by Lucy Papachristou; Editing by Bernadette Baum)