The Islamic Republic of Iran has launched a gold-backed cryptocurrency dubbed PayMon (the Persian word for covenant) as a means for circumventing international sanctions.
The gold-backed cryptocurrency is a result of cooperation between four local banks — Parsian Bank, Bank Pasargad, Bank Melli Iran and Bank Mellat — and Ghoghnoos Company. An over-the-counter (OTC) cryptocurrency exchange called Iran Fara Bourse is also expected to adopt the cryptocurrency.
PayMon will be used to tokenize banks’ assets and excess properties. A total of one billion PayMon tokens are set to be issued initially. It is expected that the cryptocurrency will be presented on the Iranian over-the-counter platform Fara Bourse.
The move comes months after international sanctions started crippling the country’s economy by forcing payment networks such as that of SWIFT from offering services to its institutions.