Iran Has Launched a Gold-Backed Cryptocurrency ‘Peyman’ in Effort to Avoid US Sanctions

The Islamic Republic of Iran recently launched a gold-backed crypto coin called the Peyman. It has come about due to cooperation between the Ghoghnoos Company and four banks. These four banks are Bank Pasargad, Persian Bank, Bank Mellat, and Bank Melli. The Iran Fara Bourse, which is an OTC exchange, will also host the new crypto coin according to the Iranian English language Financial Tribune.

Tokenizing Bank Assets

According to the Ghoghnoos director, the Peyman will be used to tokenize excess properties and bank assets. This token will be used like a wallet that channels excess assets into the economy. The director added that the technology will in future be used to facilitate banking transactions.

Efforts To Evade Sanctions

Ghoghnoos has said that a billion coins will initially be offered. In future, the crypto coins will be offered on the Iran Fara Bourse. The launch of these coins comes after speculation that Iran would avail a crypto coin to evade US sanctions. This is similar to the launch of the Petro by Venezuela.

The sanctions have crippled the ability of Iranians to trade with the world. This is because intermediaries such as the SWIFT system are barred from operating in the nation.

The SWIFT Alternative

Plans to create a crypto rial were revealed last year after Iran identified crypto as a workaround to the sanctions. Immediately after the second round of sanctions went live, the governor of the central bank of Iran announced that they would seek to create an alternative to the SWIFT system. About a week after that, Iran, Armenia, and Russia signed a blockchain cooperation deal.

In the first stage of the crypto rollout, only institutions such as banks will be able to use it. In the second phase, the citizens will be allowed to use the crypto. However, Iran does not intend to use the crypto to receive payment for any exports or use it to pay for any imports. However, this move could allow Iran to become part of an international payment system based on the blockchain in the future.

Crypto Regulations Issued By Iran’s Central Bank

Peyman’s launch comes a week after the central bank of Iran launched a draft of crypto regulations according to a report on Aljazeera. While these regulations have reversed a ban that has been imposed on crypto, there are still restrictions. For instance, it is illegal to use BTC to make any payments in Iran. Besides that, there is a cap on how much crypto an individual can hold.

Besides allowing Iranians to own crypto such as BTC, the central bank will not allow initial coin offerings. Crypto exchanges and BTC wallets will also be allowed in the nation. A point worth noting is that crypto mining will now be legal. Iran has a lot of cheap power and this will definitely prove to be a game changer. Thousands of Chinese miners have been flocking to Iran but they have been held up by the previous legislation.

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