Four Banks in Iran started supporting the new gold-backed cryptocurrency

Four Banks in Iran started supporting the new gold-backed cryptocurrency
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According to the Financial Tribune, a new gold-backed cryptocurrency was released in Iran by the company Kuknos. It is called “PayMon” and four national banks, namely Bank Mellat, Bank Melli Iran, Bank Pasargad and Parsian Bank, entered a partnership with Kuknos to support the cryptocurrency. Crypto exchange Iran Fara Bourse is likely to also host the new digital coin.

The director of Kuknos, Valiollah Fatemi, claimed that PayMon will be used to render banks “crypto-friendly” by tokenizing their assets and excess properties.

Recently, Iran announced intentions to unveil a state-backed cryptocurrency to escape US-led sanctions. The currency would be state-backed and supported by Iranian banks.

However, last month the US introduced bills to counter Iranian attempts to develop the currency. The Blocking Iranian Illicit Finance Act and other bills were introduced specifically to investigate the efforts to develop the state-backed digital coin. They also called for sanctions against the country’s funders and supporters.

Therefore, it is unclear whether the national digital asset will ever be unveiled. PayMon may represent Iran’s alternative to a riyal-based cryptocurrency.

Iran has also been reportedly negotiating with eight countries to use cryptocurrencies in financial transactions. These are South Africa, France, Switzerland, Bosnia, Austria Germany, Russia and United Kingdom.

Credit: Frode Bjørshol, Thousand Wonders.

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