Iran introduces Gold-Backed Cryptocurrency, PayMon

Iran introduces Gold-Backed Cryptocurrency "PayMon"

Iran has successfully created and launched its own digital cryptocurrency called "PayMon", according to report by Financial Tribune.

The newly introduced cryptocurrency is introduced by Kuknos Company with cooperation from four local banks. The local Iranian banks include Bank Mellat, Bank Melli Iran, Bank Pasargad, and Parsian Bank.

The PayMon launch ceremony was attended by the CEOs of all four banks and judiciary officials. All the banks listed above will host the digital cryptocurrency services. Also over-the-counter (OTC) exchange Iran Fara Bourse has also joined to host the new cryptocurrency.

The Financial Tribune quoted Valiollah Fatemi, director at Kuknos, that initial PayMon tokens issued will be backed by gold, with further plans to tokenize assets and excess properties of banks

According to the Aljazeera report, a few weeks earlier the Central Bank of Iran issued a draft on Iran's cryptocurrency regulations. Thus reversing its own ban on digital cryptocurrencies. The central bank also recognized and authorized other global and regional cryptocurrencies including bitcoin. In addition, initial coin offerings (ICOs), crypto tokens, cryptocurrency wallets, cryptocurrency exchange bureaus and mining operations of cryptocurrencies are also authorised.

US regulators took a strong stance against Iran’s plans to develop its own national cryptocurrency.
On December 17,2018, US Congress introduced a bill called the “Blocking Iran Illicit Finance Act” (H.R. 7321) that introduced more sanctions on Iran in response to Iran's national cryptocurrency development activities.

The bill introduced states under 'Title III – Sanctions With Respect To The Development And Use Of Iranian Digital Currency', the act prohibits, first "transactions related to, provision of financing for, and other dealings in Iranian digital currency", second "Sanctions with respect to foreign persons that engage in significant transactions for the sale, supply, or transfer to Iran of significant goods or services used in connection with the development of Iranian digital currency" and third "Sanctions with respect to foreign persons that conduct or facilitate significant transactions related to the purchase or sale of Iranian digital currency or maintain significant amounts in Iranian digital currency.”

The US is worried that development of Iranian cryptocurrencies may help Iran bypass certain sanctions through untraceable banking operations.

In October 2018, Venezuela also introduced its own oil-backed cryptocurrency, Petro.

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Mandar is a seasoned software professional for more than a decade. He is Cloud, AI, IoT, Blockchain and Fintech enthusiast. He writes to benefit others from his experiences. His overall goal is to help people learn about the Cloud, AI, IoT, Blockchain and Fintech and the effects they will have economically and socially in the future.

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