The Islamic Republic of Iran is keen on using cryptocurrencies and blockchain technology to circumvent the stringent economic sanctions imposed by the United States. Ever since the sanctions came into effect, the country’s economy has been snowballing downhill. There are reports that the government is in the process of launching a government-backed cryptocurrency.
Gold-Backed Cryptocurrency Supported by Financial Institutions
A gold-backed cryptocurrency seems to be a favorite to four major financial institutions in Iran as reported by Financial Tribune website. According to the article, the cryptocurrency was developed in close cooperation with four banks operating in the country namely:
- Bank Melli
- Bank Mellat
- Parsian Bank
- Bank Pasargad
It is important to note that the cryptocurrency industry is powered by exchange platforms that allow investors to purchase and trade in digital currencies. One of the exchange platforms in the country, Iran Fara Bourse, which is an over the counter exchange is reported to have already agreed to list the new cryptocurrency. This means that users will be able to transact using the digital currency as well as exchange if for other fiat currencies through the platform securely.
Kuknos, the blockchain company that is tasked with working on all technical aspects of the digital currency, through its Director recently revealed that the new cryptocurrency provides a convenient way of tokenizing assets and excess properties that are currently under the custody of banks.
It is also reported that during the first phase, a billion PayMon tokens will be released into the market. A recent article posted online reported that Iran is currently negotiating with South Africa, Germany, Russia, Austria, France, the United Kingdom, and Bosnia to allow it carry out normal financial transactions using this new gold-backed cryptocurrency.
Last week, it had been reported that the state-backed cryptocurrency would be unveiled during the Electronic Banking and Payment Systems conference that was held in Tehran last week. However, at the time of writing this article, this is yet to be done.
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