Central Bank of Iran introduced Payman cryptocurrency

After a year of speculation and news about various improvements, Iran has finally introduced Payman digital currency.

State-supported cryptocurrency will be used to circumvent sanctions from the United States. Currently, the country's financial system is isolated from SWIFT, which makes import and export almost impossible.

The launch of the state cryptocurrency was announced on January 29 during the annual conference on electronic banking and payment systems in Tehran. The theme of the conference this year was the “Blockchain revolution”.

Iran quickly discovered the power of the blockchain and digital currencies, after losing contact with SWIFT and became subject to US sanctions, which led to this bold economic step. The director of Iran’s central bank, Abdolnasser Hemati, said shortly after the country was disconnected from SWIFT that the regulator had already begun to look for an alternative.

Payman will operate on the basis of blockchain technology, through a network of computers verifying transactions without the participation of a third-party validator. The security of the digital currency will be the Iranian rial, a fiat currency issued by the central bank.

According to sources cited by Iran Front Page, Iranian citizens will be able to use the coin in payments within the country, but its implementation on a wider scale remains unconfirmed. According to blockchain developer Yashar Rashdi, an employee of the local cryptocurrency company Radfa, due to its centralized nature, Payman will not be as “big” as Bitcoin. Rashdi said that the broad masses of Iranians may not accept the currency, but it may be a boon for startups and developers.

Payman will be issued in stages. At the first stage, the currency will be available only to Iranian institutions and banks that intend to use it in payments. Subsequently, Payman will be available to the public as a means of payment for goods and services.

Although many do not consider the launch of the state digital currency to be a significant step capable of helping Iran carry out international payments, blockchain banking can be an alternative to SWIFT for the Islamic Republic.