Iranian Banks Launches Gold-Backed Cryptocurrency

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According to Financial Tribune report, Four Banks in the Islamic Republic of Iran have created gold-backed digital currency called PayMon.

As per the article, the crypto assets have been created in cooperation with the Parsian Bank, the Bank Pasargad, Bank Mellat, and the Bank Melli Iran. Iran Fara Bourse, an over the counter (OTC) digital currency exchange, will list the new digital currency.

According to the article, the director of Kuknos, the blockchain company, taking care of the technical aspects, stated that the new crypto asset is a means to tokenize assets and excess properties of the banks. A billion tokens will be released first.

As reported recently, Iran is reportedly negotiating with UK, Switzerland, France, Austria, Russia, Germany, Bosnia and South Africa to carry out financial transactions in digital currency.

Recently, rumors spread that Iran might create a national cryptocurrency as a means to circumvent new economic sanctions enacted by the U.S. President Mr. Donald Trump. The digital currency would support and tokenize Iran’s fiat currency the Rial, to facilitate domestic and cross border transaction.

A week ago, the Central Bank of Iran issued a draft report stating that it may seek to block the use of cryptocurrency in the nation and keep citizens from having significant holdings.

A month ago, US lawmakers introduced bills against Iran’s efforts to develop a sovereign digital currency.

In December 2018, it was reported that Mr. Alireza Daliri, deputy for management development and resources at the vice presidency for science and technology, stated that blockchain technology could help enhance the country’s national economy.