A gold-backed cryptocurrency has been launched in the Islamic Republic of Iran,. The cryptocurrency known as Peyman (the Persian word for covenant) is the fruit of cooperation between four banks and Ghoghnoos Company.
The four partner banks are Parsian Bank, Bank Pasargad, Bank Melli Iran and Bank Mellat. Iran Fara Bourse, an over-the-counter exchange, is also expected to host the new currency, Iranian English daily Financial Tribune reports.
Tokenization of Assets Belonging to Banks
According to a Ghoghnoos director, Valiollah Fatemi, Peyman will be used to tokenize banks’ assets and excess properties:
The token can function like a wallet and channel the excess assets into the economic cycle. We seek to extend the technology for accelerating the pace of bank transactions.
Ghoghnoos has indicated that initially one billion units of Peyman will be offered. In the near future, the cryptocurrency will be available for purchase on Irana Fara Bourse.
Peyman’s launch comes amidst speculation that Iran is planning to unveil a state-backed cryptocurrency, crypto-rial, in order to escape U.S. sanctions.
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The sanctions have crippled the ability of Iran and its citizens to conduct business with the rest of the world. This is because financial intermediaries such as SWIFT are prohibited from offering services to the country.
State-Backed Cryptocurrencies as an Alternative to SWIFT
Plans for a crypto-rial were telegraphed last year after Iran identified cryptocurrencies as a workaround for the sanctions.