Iran banks have launched a gold-backed cryptocurrency dubbed PayMon, reports the Financial Tribune.

The report claimed that four Iranian banks including Bank Melli, Parsian Bank, Bank Mellat and Bank Pasargad have joined hands with blockchain startup Kuknos for the above-mentioned project.

Moreover, it has been reported that a billion PayMon will be issued at the first stage. These will be used to tokenize banks’ assets and properties. An over-the-counter (OTC) crypto exchange named as Iran Fara Bourse is expected to use the token.

Previously, in July 2018, reports came out claiming that Iran was looking to launch its own national cryptocurrency. Iran sees cryptocurrencies as a mean to bypass new economic sanctions imposed on it by the US government. The new cryptocurrency is expected to back and tokenize Iran’s national fiat currency, the rial. Thereby, cross-border and domestic transactions will be facilitated.

However, last week, the Central Bank of Iran stated in a draft report that it is considering to block the use of unapproved cryptocurrencies for payments.

On the other hand, lawmakers in the US have presented bills against Iran’s attempts to develop sovereign cryptocurrency. In a bill introduced by Mike Gallagher (R-Wisc), the Blocking Iran Illicit Finance Act demanded an investigation into Iran’s crypto efforts.

Furthermore, in another bill, sanctions against those who provide Iran any technical or financial support to develop its cryptocurrency (digital assets) are demanded. The said bill was presented in the Senate by Sen Ted Cruz.

 

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