The Iranian government finally announced that cryptocurrency, which has been trying to avoid international financial sanctions since 2018, is called PayMon and will be backed by gold. The cryptoactive was produced through an alliance between four local banks and the Kuknos Company.
According to a report in the Financial Tribune newspaper, the Islamic Republic project will involve Mellat Bank, Melli Bank, Pasargad Bank and Parsian Bank. It has also been reported that the Fara Bourse exchange, an offshore market, will participate in the commercialization of cryptocurrency.
PayMon means an agreement in Persia, and the country has dual purpose in the agenda. First, avoid the blockade of the Swift platform, the global interbank communication system, and avoid the dollar and the restriction of selling gold or precious metals. To overcome this situation, one billion PayMon issuances have been announced.
It is important to mention. US sanctions were imposed after North American nations withdrew from the nuclear agreement. President Donald Trump announced this because of "threatening and unstable behavior" with Iran.
The second purpose is to use cryptoactive for citizens. At this point, the central bank will be involved in issues to be addressed to the national currency, Rial.
Valollah Fatemi, chief executive of Kuknos, said PayMon will be used for "initial gold-based token issuance" and the company will "try to tokenize the bank's assets and excess assets."
Last week, through the central bank, the Iranian government issued a series of preliminary rules on local cryptography. cryptocurrency Establish a more flexible location in relation to mining, Creation of exchange houses, use of wallets and initial call suggestion (ICO).
Although there is a greater acceptance of cryptoactives, the state is banned from using "global cryptocurrencies" as a payment method in the country. In other words, bit coin, ether, or other decipherable operators can not be used to obtain goods or services within that territory.
Other governments, such as Venezuela, also have PayMon presentations in front of bank executives and staff of the Justice Department of Iran. International Finance and US Sanctions. In December 2017, President Nicolás Maduro announced the creation of Petro as the cryptocurrency of the Venezuelan state.
Three months after the announcement, President Trump has signed an executive order that prohibits Americans from purchasing cryptocurrency issued or supported by the Venezuelan government. In this scenario, it will also be a problem if the United States issues similar orders to limit PayMon's purchases.
As far as technology is concerned, much detail about the underlying technology behind cryptoactive has not been revealed. It is reported that in August 2018 the country will be decrypted by the HyperGLASS Fabric.
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