“Ramz Rial” is a digital asset with the support of the government and the central bank
“Reza Ghorbani”, a member of the Board of Directors of Computer Trade Union Organization of Tehran (Nasr) Province, in an interview with the reporter of Iran Economist, pointed out important points about Rial and its difference with the world of cryptocurrencies.
According to him, if the Riyal currency is backed by gold or other valuable metals, it might be more popular with the public.
The head of fintech commission of Nasr Organization of Tehran about the difference between cryptocurrency and Rial token and the fact that people have a similar perception of these 2, said: Rial token and cryptocurrency are both in the form of digital assets, and Rial token is considered among digital assets only because of that. It is similar to cryptocurrency.
Ghorbani said about the differences between these two digital assets: “Cryptocurrency” is a translation of the word “Cryptocurrency” and means unbacked tokens that are formed based on consensus and the network that moves around it, and are a kind of money that is issued Not done by the central bank.
Rial is a type of money with the support and support of the government
The head of the fintech commission of Nasr Organization of Tehran continued: On the other hand, “Romzrial” is a type of cryptocurrency or digital currency of the central bank, which are included in the category of stable coins. This token has support, its price is fixed, it does not have the usual fluctuations of cryptocurrencies, and unlike cryptocurrencies, it is approved by central banks and governments, and its support is the common currency of the country.
He said about the advantages and disadvantages of Riyal currency: “Rim Riyal” is equivalent to money and the same Riyal that we know and use daily. That rial has been digitized in Riam Rial, and its exchanges are not done through mediation between banks, and people can transfer their rials from person to person through the central bank and their wallets, and they can make payments, buy and sell small and large amounts of it. to use
Ghorbani added: Unlike the coins and bills that we have in banks, which have been converted into electronic money, “Romerrial” eliminates the middleman between banks and solves many issues related to inter-bank payments and transfers.
Threats in the world of cryptocurrencies raised the issue of native digital currency
Regarding the question of why native electronic money is needed, he answered: The reason why the “digital currency” of central banks has been raised all over the world since a few years ago is that the central banks felt that they were lagging behind cryptocurrencies. Especially when stablecoins like “Tether” entered the trading market and the problems that arose in the network of cryptocurrencies like “Tera” and stablecoins like “Luna”, many monetary and banking institutions of the world thought of creating tools based on technologies Use the DLT (Distributed Ledger) or Blockchain digital asset space.
A member of the board of directors of the computer trade union organization of Tehran province emphasized: For this reason, many monetary and banking institutions are looking to launch their own native digital currency.
Ghorbani said about the obstacles that may stand in the way of the Rial code: the implementation of the use of the Rial code depends on the acceptance of the people, they must be able to communicate with this concept. In the issue of cryptocurrencies and digital currencies, the issue of public acceptance is very important and cannot be easily ignored.
He said: “One of the other things is that Rial, as its name suggests, is equivalent to Rial, and all issues related to inflation are also present in Rial, and this is one of the serious criticisms of this digital currency.” Maybe if they put gold, diamonds and other precious metals instead of Rial, Rial code would be more valuable.