The Iranian government finally announced that the cryptocurrency it has been working since 2018 to evade international financial sanctions is called PayMon and will be supported by gold. The cryptoactive is the product of an alliance between four local banks and the company Kuknos Company.
According to a report published by the Financial Tribune newspaper, the project of the Islamic Republic will participate in Bank Mellat, Bank Melli Iran, Bank Pasargad and Parsian Bank. In addition, it was reported that the Fara Bourse exchange, an over-the-counter market, will be part of the commercialization of crypto competition.
With PayMon, which means consensus in Persian, the nation has a dual purpose on the agenda. The first, trying to evade the blockade of the Swift platform, a global interbank communications system, the limitation to acquiring dollars and marketing gold or precious metals, among others. To overcome this situation, the issue of one billion PayMon was announced.
It is important to mention it US sanctions were applied after the North American country left the nuclear agreement with Iran, this because of its "threatening, destabilizing behavior", President Donald Trump announced.
The second goal is to use cryptoactive as a payment method for citizens. At this point, the central bank will come into play with a problem that will be supported in the national currency.
Valiollah Fatemi, CEO of startup Kuknos, said PayMon will be used to "issue the original gold-based token" while the company will attempt to "declare the banks' assets and excess properties."
Last week, the Iranian Government, through its central bank, issued a number of preliminary rules on the local crypto economy where put a more flexible position in relation to cryptocurrency mining, creation of exchange houses, use of purses and the initial currency offers (ICOs).
Although there is greater acceptance of cryptoactive substances, the country is prohibited from "using global crypto-curves as payment methods within the country". That is, the operators that have bitcoin, ethers or other cryptocurrency cannot use them to acquire goods or services within their territory.
The presentation of PayMon before the bank's leaders and the Iranian judiciary happens after other governments, like one of Venezuela, have also adopted the crypto assets to search for international financing and counteract US sanctions. In December 2017, President Nicolás Maduro announced the creation of petro as a cryptocurrency of the Venezuelan state.
Three months after this announcement, President Trump signed a decree prohibiting Americans from buying any cryptocurrency issued or supported by the Venezuelan government. With this scenario, the question would be whether the United States would also issue a similar order to limit the purchase of PayMon among its nationals.
With regard to the technical aspect, many details of the technology behind the cryptoactive has not been revealed. In August 2018, it was reported that the national cryptocurrency will be issued at Hyperledger Fabric.
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