Another country that faces a financial crisis due to the US sanctions issues its own national cryptocurrency. A group of Iranian banks presented a PayMon pegged to gold.

Islamic revolution in digital

Four Iranian banks (Bank Mellat, Bank Melli Iran, Bank Pasargad, and Parsian Bank) presented PayMon cryptocurrency, each coin of which is backed to gold reserves. Technical support for the project was provided by the blockchain-startup Kuknos.

The primary issue of PayMon tokens was 1 billion coins. As expected, they will be traded on the Iranian over-the-counter Fara Bourse platform.

PayMon in Persian means “covenant”.

The goal of the project is to tokenize the assets of banks and financial institutions, said Valiollah Fatemi, director of Kuknos. It is still unknown which blockchain the Iranian cryptocurrency is built on. The Iranian Central Bank also remained silent on the four banks' initiative.

Crypto rial

Against the background of tough economic sanctions imposed by the United States, the Islamic Republic decided to partially lift the ban on cryptocurrency turnover and announced plans to issue its own stablebcoin pegged to the national currency rate. A week ago, the media reported that the Central Bank of Iran was ready to partially remove the ban on cryptocurrencies, while Iranian banks made public their plans to launch their own stablebcoin.

According to Al-Jazeera, Russia was helping Iran to create digital currency, although this information was not yet confirmed. According to some sources, the Central Bank of Iran will only ban the use of "unapproved" cryptocurrencies. The list of allowed cryptocurrencies will be updated every three months. According to rumors, Iranians may be allowed to own cryptocurrencies, but not more than 10,000 euros in equivalent.