Customers of the banking network can use the digital Rial wallet without requiring cash or bank cards as of July 1403, thanks to the Central Bank’s initiatives and the construction of the new “Digital Rial” service in Kish Island’s testing phase. You can make purchases using new methods or transfer money to other customers’ wallets by scanning the barcode that the software generates.
The Central Bank placed the design of the digital Rial on its agenda in 1400 after completing the initial study stages, and at the start of 1401, the pre-test phase began. The project will enter an extensive phase in July 1403, with the participation of Mellat Bank and Tejarat, potentially enabling public exploitation, thanks to the active participation of the banking network and the essential cooperation in the country’s payment network.
Customers of the banking network and tourists will have the opportunity to pay for the purchase of products and services using this new payment tool at this stage, which is expected to commence in the geographical area of Kish Island.
What is digital Rial and why was it established?
The central bank’s digital Rial is an electronic obligation that can be utilized to make public payments, similar to currency. In contrast to other common electronic services in the country, such as bank accounts and bank cards, digital Rial does not necessitate interbank settlement for fund transfers between the buyer and vendor. The vendor may promptly utilize the funds that have been received after the purchase operation has been finalized. the seller has access to it and it is functional.
Additionally, this way of payment is considerably easier than traditional card payment methods due to the employment of contemporary equipment in the payment operations, which also increases payment security.
Initially, this project was established by the Central Bank of the Islamic Republic of Iran to meet the needs of the payment industry and provide the groundwork for the growth of the nation’s digital economy.
In this regard, they also consider other important goals, such as increasing the resilience and stability of the country’s payment infrastructure, reintroducing electronic cash into small payments, improving efficiency and developing new payment tools, and managing the risks associated with the spread of private money.
What are the key qualities of a digital Rial?
The digital Rial provides the required capacity for the development of innovative business models, particularly in e-commerce and the country’s digital economy.
It is worth mentioning that, according to the policies considered by the central bank and considering the legal supports, including the powers delegated, the digital Rial has been published by the central bank as a small digital currency. This bank’s goal is to lay the groundwork for the development of micropayment tools in the economy based on this new form of money. Additionally, the country’s banking network had the chance to develop new payment tools based on digital Rial in the early stages, and it plans to expand this role to other entities active in the country’s payment system and new financial technologies in the future.
Note that the country’s geographical boundaries and domestic micropayments are the only uses for the digital Rial at this time.
Source: Central Bank of the Islamic Republic of Iran