Iran intends to launch its own gold-backed cryptocurrency. This became known less than a week after President Trump criticized virtual currencies on his twitter.
The general director of FANAP, Iranian information and communication technology company Shahab Javanmardi, said that the Central Bank of Iran (CBI) has approved the release of a new cryptocurrency.
Shahab commented on the news:
Iranian cryptocurrency will be supported by gold, but its function is similar to other cryptocurrencies. Cryptocurrency is designed to maximize the efficient use of Iran’s frozen bank assets.
It is known that such banking organizations as Parsian Bank, Bank Pasargad, Bank Melli Iran and Bank Mellat have already cooperated with the blockchain-Kuknos Company on this issue in January. The local edition of the Financial Tribune reported that the new cryptocurrency project will be called Paymon.
The Iranian government is wary of bitcoin and mining cryptocurrency. The reason is that the government doesn’t like the high power consumption of mining. It is noteworthy that electricity is subsidized in Iran, and many miners have taken advantage of this opportunity to provide large farms with cheap electricity.
The news reports that CBI is seeking to ban private cryptocurrency-related services, imitating China. However, the status of Bitcoin in the legal system is still not completely clear. Various government agencies are very controversial on this issue. In this respect, crypto regulation in Iran is in the same limbo as in most countries of the world.
Javanmardi called on the government to maintain a policy of restricting the use of bitoin in Iran. The Iranian government seems interested in the fact that Bitcoin miners are not benefiting from low electricity prices.
Ironically, at the same time, the US government accused the Iranian government of actually using bitcoin to circumvent sanctions – because bitcoin is unchanged and not subject to centralized control. So the Iranian government seems to have chosen the position “I can, but you can’t” in relation to Bitcoin.
With the tightening and rapid introduction of US sanctions, all trade and political paths become the road of struggle between the two countries. There is a direct relationship between the collapse of the national currency and the interest in cryptocurrency. The fact that cryptocurrency is a way to avoid the monopoly of the international interbank system of information transfer and making payments (SWIFT) in finance, speaks in its favor. Thus, it can be said that the country simply takes understandable and timely measures to cope with the situation.
Iran is not alone in its interest in cryptocurrency. In fact, more than 70% of global central banks are considering the possibility of launching their own currencies.