The Islamic state of Iran has launched a gold-backed cryptocurrency, known as Peyman. It is supposedly the result of co-operation between 4 banks and the Ghoghnoos Company.
The four banks – Parsian Bank, Bank Pasargad, Bank Melli Iran and Bank Mellat, are also the joint partners in the development of Peyman.
As per reports by the Financial Tribune, a local English daily, Iran Fara Bourse, an over-the-counter crypto market, will also allow trade in this new cryptocurrency.
According to Ghoghnoos, an initial one billion Peyman tokens would be up on sale. The Iran Fara Bourse is also expected to offer the gold-backed crypto quite soon.
The Peyman has been unveiled at a time when the Iranian authorities are mulling over the launch of a state-backed cryptocurrency, to counter the U.S. sanctions that have secluded Iran from trading with the other nations of the world.
When Iran was voted out of SWIFT (Society for Worldwide Interbank Financial Telecommunication), the country was no longer to conduct cross-border transactions.
This has affected the Iranian economy drastically and so, Islamic state first sought to introduce a crypto, or more rightly a crypto Rial, an alternative to both – the local fiat currency and the SWIFT network.
Recently reported, Iran has also entered into a trilateral agreement with Russia and Armenia over the development of a blockchain-based payment network.
The cryptocurrency, when introduced, will have two phases associated with its rollout. The first phase would be reserved for mostly financial institutions, while the second phase would gradually incorporate citizens into the grand scheme of things.
Al Jazeera also reported on the segment of Iran’s central bank uplifting the ban imposed on
cryptocurrencies like Bitcoin and ICO’s with cryptocurrency mining given the nod as well.
Although many restrictions still remain in place, the country is slowly trying to crawl back into a position where it’s economy is somewhat stable, not in the crippling state it has been in for some time now, by accepting the crypto trade and trying to integrate it with the country’s economy.