Iranian Banks Developed Gold-Backed Cryptocurrency

Four Iranian banks and Kuknos crypto startup have developed cryptocurrency named PayMon. The new coin is backed by gold and will be used in the tokenization of assets.
According to the Financial Tribune, with, banks will be able to tokenize assets and real estate. Each token of a new cryptocurrency will be backed with gold. Four Iranian financial institutions participated in the development of PayMon: Bank Mellat, Melli Iran, Bank Pasargad and Persian Bank. Blockchain project Kuknos helped them to create the coin.

In addition to tokenization, PayMon will be used in over-the-counter trading. In the near future, the cryptocurrency may appear on the Iranian OTC-exchange Fara Bourse.

Last summer, the Iranian authorities stated they were developing a cryptocurrency that would help the country bypass US sanctions. In January 2019, several US senators drafted a bill against the development of cryptocurrency in Iran. In particular, the proposal of senators introduces sanctions against anyone who helps the country in creating the digital coin.

It is not yet known whether PayMon will be used to circumvent US sanctions.

In early February, the Central Bank of Iran issued a report in which it stated it could ban cryptocurrency in the country. Ordinary citizens should use only coins approved by the regulator. BTC is not included in this list.

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