Will Iran’s Crypto Rial Digital Asset ‘PayMon’ Amount To Anything More Than Another Shitcoin?

Does Iran’s New Crypto-Offering Have The Makings Of A Potential Scam?

As BitcoinExchangeGuide reported earlier last month, Iran has officially lifted its “outright ban on Bitcoin” so as to foster its very own digital offering called the ‘crypto rial’. If that wasn't enough, the Iranian government is now planning to launch a new digital asset called “PayMon” — which will be backed by the Iran’s national gold reserves.

With that being said, it should be made clear that PayMon is not really a cryptocurrency since it is not decentralized and makes use of an intermediary agent to facilitate transfers.

Is PayMon A Sh*tCoin In The Making?

In a recent interview with a respected media outlet, Iranian blockchain expert Hamid Reza Shaabani, spoke at length about the potential uses of the aforementioned cryptocoin. On the Matter, Shaabani was quoted as saying:

“Much of the PayMon currency will enter the market and will be traded in special exchange offices. Some of it will be used for the development of hosts; and some of it will go to the founders of Ghoghnoos.”

From the sounds of it, Paymon’s overall usability is quite limited and has all the makings of a shitcoin.

In addition to all this, when Shaabani was asked about the utility of such a crypto offering in the context of Iran’s current economic condition, he replied that the nation’s excellent geographical position (as well its people’s rising interest in digital assets) would help it “bypass economic sanctions” that have been unlawfully levied against the country.

More On The Matter

At this point in the article, it is worth remembering that over the course of the past few months, Iranian officials have been talking with a host of nations such as the UK, Germany, France, Russia so as to devise a plan that will help it bypass existing sanctions that have been levied against it by the United States.

However, as we all know, most the above mentioned nations are governed by the whims of the USA, thus, it seems quite unlikely that Paymon will be able to find any backers in the near future.

On this very subject, Shaabani did acknowledge that finding international takers would be the main challenge and the success of Paymon would “depend on the acceptance of foreign legislative bodies.”

Other Key Details Worth Noting:

  • PayMon users will have to undergo KYC— which basically points to the fact that the crypto offering will be centralized.
  • PayMon will “allegedly be backed by gold”.

Final Take

Iran is definitely not the first nation to explore the option of a cryptocurrency that is backed by gold— since around this time last year, Venezuela too was looking to create the ‘Petro Gold’ token.

In closing out this piece, it should be noted that since Paymon is not trustless, peer-to-peer, the currency will most likely not be able to find any real takers in the international market.

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