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Iranian banks launch a gold-backed cryptocurrency

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Gold-Backed Cryptocurrency Launched by Iranian Banks Report Crypto Heroes

Four Iranian banks have partnered to launch a gold-backed cryptocurrency, according to a report by Financial Tribune. The cryptocurrency called “PayMon” was launched by Bank Mellat, Bank Melli Iran, Bank Pasargad and Parsian Bank.

The banks partnered with blockchain startup Kuknos Company on this project, and the cryptocurrency was designed to tokenize the banks’ assets and properties. According to the report, a billion PayMon tokens will be issued initially. Furthermore, the report pointed out that Fara Bourse, an over-the-counter (OTC) crypto exchange in the country is expected to use the token.

Last week, Crypto Heroes reported that Iran is expected to unveil its state-backed cryptocurrency as a means of circumventing the sanctions imposed on it by the United States and SWIFT. The central bank-issued digital currency (CBDC) is expected to be backed by the Rial and would become an alternative to SWIFT. The state-backed cryptocurrency could be used to facilitate domestic and cross-border transactions.

The Central Bank of Iran issued a draft report last week noting that it might seek to block the use of unapproved cryptocurrencies as a means of payment in the country.

In January, US lawmakers introduced bills against the Iranian government’s efforts to create a state-backed digital currency. The bill, dubbed Blocking Iran Illicit Finance Act, was introduced by Rep. Mike Gallagher (R-Wisc.). The bill calls for an investigation into the crypto efforts made by Iran.

Senator Ted Cruz from Texas presented a similar bill to the Senate. The bill calls for sanctions against individuals and groups that knowingly provide Iran with funding, services or technical support used in the development of the state-backed cryptocurrency.

Meanwhile, Iran is not the only country facing sanctions from the US. Russia is facing similar sanctions, with reports surfacing that the country is working on crypto Ruble, a state-backed cryptocurrency. Another state-backed cryptocurrency is Petro, which the Venezuelan government has developed to help avoid US sanctions.

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