“PayMon” is the latest stablecoin to join the ranks of gold-backed crypto assets. Launched in Iran, four Iranian Banks, Bank Mellat, Bank Melli Iran, Bank Pasargad and Parsian Bank recently partnered with Kuknos Company, a blockchain startup for the project, according to the Financial Tribune.

PayMon is aimed for use in “tokenising” the bank’s assets, with a billion to be issued as per the report. The report added that Iran Fara Bourse, an over-the-counter (OTC) crypto exchange will more than likely make use of the token.

Back in July 2018, it was reported that Iran might create a national digital asset as a way to bypass economic sanctions which were put in place by US President Donald Trump. The digital asset was to back & tokenise the rial, the nation’s national fiat currency and was to be used to facilitate both domestic and cross-border transactions.

However, last week the Central Bank of Iran released a draft report which stated that they might block the use of unapproved digital currencies as a means of valid payment.

Back in January, a group of US lawmakers issues bills to combat Iran’s endeavors to create a sovereign digital asset.

Introduced by Rep. Mike Gallagher (R-Wisc), sections of the Blocking Iran Illicit Finance Act, called for investigations into Iran’s plans for digital assets. Following this, a corresponding bill was submitted to the US Senate by Senator Ted Cruz.

These proposals call for sanctions against any parties who knowingly assist Iran or Iranian businesses with funding, services “technological support, used in connection with the development of Iranian digital currency.”

Could Iran’s gold backed token genuinely see the light of day? Or will the USA’s efforts put an end to it before it sees the light of day?

Let us know your thoughts.

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