Iranian Banks Jointly Design a Gold Backed Cryptocurrency

In the explosive growth of blockchain and cryptocurrencies, the countries are slowly but steadily moving towards the crypto asset revolution. Many countries have considered the idea of generating its own cryptocurrency and started working on that. The Islamic Republic of Iran is also in the race here. Four banks of the country have created a gold-backed cryptocurrency called PayMon.

The collaboration which has developed the crypto asset in Iran contains four banks. It includes the Parsian Bank, the Bank Pasargad, Bank Melli Iran and Bank Mellat. These banks received the assistance of Kuknos a blockchain firm to design a gold-backed cryptocurrency. Kuknos is overseeing the technical aspects of the project. The director of Kuknos believes that the new crypto asset will help to tokenize assets and excess properties of the banks.

Reportedly, A billion gold-backed token PayMon will be released initially. A cryptocurrency exchange in Iran, ‘Iran Fara Bourse’ which also provides over-the-counter (OTC) trading will enlist this newly developed cryptocurrency.

Moreover, Iran was interested to carry out its own state-backed cryptocurrency. The rumours also started the speculation that the country is going to announce its cryptocurrency at the Electronic Banking and Payment Systems conference in Tehran last week. However, the announcement didn’t take place yet. Back in July last year, the country had firmly decided that it will develop its state-issued cryptocurrency to keep away from the sanctions imposed by the United States. Recently, reports came out hinting that Iran is in negotiations with Switzerland, South Africa, France, the United Kingdom, Russia, Austria, Germany and Bosnia in order to conduct financial transactions in digital currency.

However, the Iranian lawmakers intend to implement legislation to prevent citizens from having significant holdings in cryptocurrency. The Central Bank of Iran also noted that there should be legislation to curb the use of crypto for payments inside the country.

Similarly, Venezuela had rolled out its own cryptocurrency which was oil-backed called ‘Petro.’ Although, the outcomes of this cryptocurrency of Venezuela is still unclear. Coming back to Iran, Alireza Daliri, deputy for management development and resources at the vice presidency for science and technology acknowledges the importance of blockchain in the national economy of Iran.

Ruti Vora

Ruti regularly contributes in-depth news articles for leading cryptocurrencies. She contributes technical chart-based price updates and analysis pieces on the world's leading digital currencies.

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