Page 30 - IRANRptMay19

IRR1bn daily cap placed on Iranians by central bank
government channel.
The system is to be operated by Toshan Electronics Payment System, which currently acts as a payment facilitator and point-of-sale electronic payments operator.
Some $14bn has been set aside for the digital rationing system. It will be paid through to authorised local bank cards which shoppers can use in purchases at designated butchers.
To begin with the project will operate in pilot cities, including Tehran and Karaj, the two most populated places in the country. Point-of-sale systems in the cities are to be updated over the next few weeks.
Iran has for months been developing its ‘digital sanctions’ books .
Restricted sales of petroleum—even though Iran produces its own petroleum—were introduced prior to sanctions that were put in place last November 5 in an effort at placing a worldwide embargo on Iran’s economically crucial oil, gas and petrochemical exports. The only Iranian oil exports that presently have US approval go to eight countries which were awarded temporary sanctions waivers by Washington.
The Central Bank of Iran (CBI) has announced a daily spending cap of IRR1bn ($9,434 at the free market rate) per person, according to a circular sent out to banks on December 9 as cited by Tasnim News Agency.
Given the disruption caused to Iran’s foreign exchange markets and the severe devaluation of the Iranian rial (IRR) by the new sanctions regime targeted at Tehran by the US, the CBI has for several months been trying to control cash in circulation and battle profiteering and speculation. It has also pushed profits from international trade into its designated NIMA payments system.
According to the memo, the new policy is aimed at combatting money laundering and further depreciation of the rial. Incidentally, it has had a significant impact on controlling currency fluctuations since its introduction earlier this week.
In large transactions, the IRR1bn maximum is applied to a person via their national ID number. That is tracked by the local banking payment system across all bank accounts.
Another regulation limits bank card to bank card payments to IRR30mn per day per person.
8.3 Cryptocurrency
‘Gold-backed’’ cryptocurrency Peyman launched in Iran
The gold-backed Peyman (PMN), Iran’s first cryptocurrency endorsed by its government, was on January 30 given a launch before a crowd of banking, judiciary and financial officials in Tehran, IBENA reported.
Iran has mooted the idea of a cryptocurrency to get around stringent US sanctions which have seriously hampered trade between the country and the outside world. However, whether the new crypto will be widely used for international trade or even for trade conducted inside Iran remains to be seen.
Peyman (“Covenant” in Persian), unveiled by private company Ghoghnoos Co., is the first non-banking firm in Iran to launch a cryptocurrency. It has done so in conjunction with four banks in the country. Banks Mellat, Melli, Pasargad and Parsian are backing the project. The Iran Fara Bourse (for over-the-counter exchange trading) will be the first trading centre to provide for transactions in the digital currency.
Unusually for a cryptocurrency, there will be no initial currency offering (ICO)
30 IRAN Country Report May 2019 www.intellinews.com