Iranian Bank Launches Gold-Backed
Iran made a surprising move in the crypto space. That is because the country reportedly launched a digital currency called PayMon. Interestingly, it is being backed by gold.
Introducing the PayMon
According to the official report, the country revealed the gold-backed crypto in cooperation with a number of banks. These are none other than the Bank Melli Iran, the Bank Pasargad, the Parsian Bank, and the Bank Mellat. It is also expected from Iran Fara Bourse, an OTC or over-the-counter crypto exchange, to adopt the newly-launched digital currency.
The report further suggests that the director of Ghoghnoos named Valiollah Fatemi was the one who revealed the PayMon. As per his own words, the crypto will be specifically used in tokenizing the different assets and properties from many financial institutions.
Ghoghnoos reiterated that a total of about one billion of this digital currency is set to be issued at first. The move basically comes a couple of months after the infamous international sanctions crippled Iran’s economy. This happened after its payment networks were forced from offering its services directly to its own institutions. Perhaps the most popular among these networks is none other than SWIFT.
Apparently, this decision has halted the country’s people from performing business with the rest of the world. They even saw the country’s government plan as something that is solely supporting the gold-backed national digital currency. According to previous reports, the latter was initially believed to go straight to commercial banks as soon as it hits the first phase.
Nurturing Iran’s Crypto Space
It holds true that Iran has yet to reveal hefty details about the new cryptocurrency PayMon. However, many experts believe that it was specifically developed for the Iranian central bank and is courtesy of Informatics Services Corporation (ISC).
In the second phase, the gold-backed crypto will go to the country’s citizens. It is worth noting that the digital currency, which is confirmed to be issued only by the country’s central bank, was launched as soon as the central bank completed issuing draft crypto regulations.
These regulations resulted in a ban, which was responsible for stopping local banks from dealing with digital assets. At the same time, it helped ease some of the many rules Iran has when it comes to ownership of cryptos. It holds true that digital currency like Bitcoin can still be used for payment – not to mention the existence of limits people can hold – ICOs and crypto wallets are now legally allowed in the country.