Iran Announced National Cryptocurrency
A week ago US President Donald Trump slammed Bitcoin and cryptocurrency by saying that they are made up of thin air. Local News Agency Tehran News of Iran reported that Iran announced a national cryptocurrency that is backed by gold.
The CEO of Iranian Information and Communication Technology (ICT) FANAP, Shahab Javanmardi reveals that Central Bank of Iran (CBI) approve the issuance of a national cryptocurrency.
Shahab explained:
IRAN’S CRYPTOCURRENCY WILL BE SUPPORTED BY GOLD, BUT ITS FUNCTION IS SIMILAR TO OTHER CRYPTOCURRENCIES. THE CRYPTO ASSET IS DESIGNED TO MAXIMIZE THE USE OF IRANIAN FROZEN BANK ASSETS.”
According to the reports, the name of the gold-backed cryptocurrency project is Paymon.
This is a bold move by the Iranian Government because recently Iran Government cut off the power supply for mining farms due to an unexpected rise in power consumption. The power supply cut until a new bill passes about the electricity cost.
CBI was planning to ban private cryptocurrencies and ICOs just like China.
Bitcoin is the hottest topic in politics now and the government can’t ignore further. The Facebook Libra Coin takes a lot of attention from regulators.
A national cryptocurrency that is backed by gold will help to reduce the hyperinflation of the national fiat currency. Venezuela is also creating a cryptocurrency backed by oil to fight the economic crisis.
Iran is facing a lot of problems in the national fiat currency due to US deals. A national cryptocurrency will help to escape from the monopoly of SWIFT transfer in finance.
Iran central bank is not the only one looking to regulate cryptocurrency, as per reports more than 70 percent of the central banks are looking closely the behaviour and working of cryptocurrencies.
