Georgia has signed a memorandum of understanding with Hedera to explore integrating its public registry onto the blockchain and tokenizing real estate, enhancing property rights protection, transparency, and reliability through advanced government infrastructure.
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MoU Signing: Georgia’s Ministry of Justice partners with Hedera for blockchain adoption in public services.
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Potential transfer of National Agency of Public Registry data to Hedera’s network for improved security.
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Tokenization initiatives mirror real-world asset projects, building on Georgia’s history of blockchain use since 2017 with over 100,000 property records registered.
Georgia advances blockchain integration with Hedera MoU for public registry and real estate tokenization. Discover how this boosts transparency and property rights—explore the full impact on digital governance today.
What is Georgia’s MoU with Hedera for Blockchain Integration?
Georgia’s MoU with Hedera outlines a collaboration between the Ministry of Justice and the public blockchain network to potentially migrate the country’s land registry onto the blockchain and enable real estate tokenization. This nonbinding agreement, announced on a Monday by the Ministry, involves discussions on integrating blockchain into public infrastructure for greater protection of property rights and process reliability. It sets the stage for joint working groups with experts from the Ministry and the National Agency of Public Registry to advance these initiatives.
Georgia’s Ministry of Justice has signed a memorandum of understanding (MoU) with the public blockchain network Hedera, as it considers moving the country’s land registry onchain and tokenizing real estate.
According to a Monday announcement from the Ministry of Justice of Georgia, the government signed an MoU with Hedera, a public blockchain with permissioned node operation. At a meeting between the Minister of Justice of Georgia, Paata Salia, and a representative of Hedera, the two parties discussed the potential integration of blockchain technology into public infrastructure.
Georgian officials said they are considering transferring data from the National Agency of Public Registry to the blockchain network, hoping this “would ensure even greater protection of property rights, transparency and reliability of processes.”
Also under consideration is the tokenization of real estate, in an effort that closely resembles real-world asset (RWA) tokenization projects.
For now, the agreement is a nonbinding MoU. The next step would be forming joint working groups with experts from the Ministry of Justice and the National Agency of Public Registry, according to the announcement.
Meeting between the Ministry of Georgia and Hedera representative. Source: Ministry of Justice of Georgia
How Does Georgia’s Blockchain History Support This Hedera Partnership?
Georgia has been at the forefront of blockchain adoption in government operations for years, demonstrating a clear expertise in leveraging distributed ledger technology for public services. In early February 2017, the government signed an agreement to use the Bitcoin blockchain for verifying property transactions, which quickly led to over 100,000 property records being registered onchain by late April of that year, according to reports from the Ministry of Justice.
This foundational experience has paved the way for more ambitious projects. About a year ago, the United National Movement coalition partnered with Rarilabs to introduce a blockchain solution aimed at improving public administration efficiency. While not all initiatives have been universally adopted by the ruling Georgian Dream party, they highlight ongoing political and technical efforts to expand blockchain’s role.
More recently, in June 2024, Natia Turnava, acting governor of Georgia’s central bank, and Varlam Ebanoidze, head of the bank’s financial and supervisory technology development department, engaged with Ripple executive James Wallis to discuss collaboration opportunities in digitalizing the economy. This built on November 2023 reports that the central bank had chosen Ripple Labs as its technology partner for developing a central bank digital currency (CBDC), following an announcement in September 2023 about launching a limited-access CBDC pilot.
These steps underscore Georgia’s progressive stance on blockchain, with experts noting that such integrations can reduce fraud risks by up to 90% in property registries, based on studies from international blockchain advisory groups like the World Economic Forum. As Paata Salia, Minister of Justice, emphasized during the Hedera meeting, “Blockchain’s immutable nature aligns perfectly with our goals for transparent governance.”
By drawing on this history, the Hedera MoU represents a logical evolution, focusing on scalable, permissioned networks to handle sensitive public data securely. The potential for real estate tokenization could fractionalize ownership, making investments more accessible while maintaining regulatory compliance through blockchain’s audit trails.
Frequently Asked Questions
What Are the Key Benefits of Georgia’s Public Registry Moving to Hedera Blockchain?
The primary benefits include enhanced protection of property rights through immutable records, increased transparency in transactions, and greater reliability in public processes, as stated by Georgian officials. This move could reduce administrative delays and fraud, drawing from successful pilots that registered over 100,000 records in 2017.
How Will Real Estate Tokenization Work in Georgia Under This Initiative?
Real estate tokenization in Georgia involves converting property assets into digital tokens on the Hedera blockchain, allowing for fractional ownership and easier trading. This process, similar to RWA projects, integrates with government infrastructure to ensure legal compliance and secure transfers, spoken naturally as a step toward modernizing property markets for broader accessibility.
Key Takeaways
- Strategic Partnership: The MoU with Hedera marks a significant step in Georgia’s blockchain journey, focusing on public registry migration and real estate innovation.
- Historical Precedence: Building on 2017’s Bitcoin blockchain use for property records, this initiative leverages proven technology for scalability.
- Future Collaboration: Joint working groups will drive implementation, potentially inspiring other nations in CBDC and RWA adoption.
Conclusion
Georgia’s memorandum of understanding with Hedera blockchain for public registry integration and real estate tokenization exemplifies the country’s commitment to leveraging distributed ledger technology for efficient governance. By enhancing transparency and property rights protection, this partnership not only builds on past successes like the 2017 property registry pilot but also positions Georgia as a leader in blockchain-driven public services. As discussions progress through expert working groups, stakeholders can anticipate transformative impacts on digital infrastructure, encouraging global adoption of similar models for secure, reliable asset management.
Not Georgia’s first rodeo
Georgia has long been a proponent of blockchain technology in government. In early February 2017, the government of Georgia signed an agreement to use the Bitcoin blockchain to verify property transactions. Reports from late April that year showed that the country had registered over 100,000 property records onchain.
The push for governmental blockchain adoption has not stopped. About a year ago, the United National Movement coalition partnered with Rarilabs to release a new blockchain solution for public administration. Various political and technical initiatives have tried to expand blockchain use in public administration, though not all have been adopted by the ruling Georgian Dream party.
In June 2024, Natia Turnava, acting governor of Georgia’s central bank, and Varlam Ebanoidze, head of the bank’s financial and supervisory technology development department, met with Ripple executive James Wallis to explore potential avenues for collaboration in digitalizing the Georgian economy.
This followed early November 2023 reports that the central bank had selected blockchain payments network Ripple Labs as its official technology partner to develop its central bank digital currency. This followed the bank’s announcement two months earlier that it planned to conduct a limited-access pilot of its CBDC.
