Pi Network is an innovative project that, while based on blockchain technology, aims to function not just as a cryptocurrency, but as a real currency for everyday use. As a digital currency usable anywhere in the world, it has the appeal of forming a global economic zone.
Reasons Why Pi Network Aims to Be a “Currency”
Traditional cryptocurrencies (such as Bitcoin and Ethereum) tend to focus primarily on their value as assets for investment and trading. However, Pi Network’s main goal is to become “money” that can be used for payments in daily life, such as for actual shopping and service use. This is a major characteristic that sets it apart from many existing cryptocurrencies.
Placing More Emphasis on “Use Cases” Than “Value”
Pi Network is designed with an emphasis on stability, making it easy to use as a daily payment method, rather than pursuing large fluctuations in market trading prices. Considering the background where general cryptocurrencies tend to become “speculative assets,” Pi Network aims to realize the inherent role of currency—that is, as a medium of exchange and a measure of value when buying and selling goods and services.
Pi Network Liquidity: A Reserve of 1 Billion Pi
Pi Network has a plan to prepare 1 billion Pi to ensure liquidity. This is an essential mechanism to enable smooth exchange of Pi between exchanges and users, and to function as a necessary payment method for commercial transactions. Even if a large volume of buying and selling occurs simultaneously, the design is intended to prevent extreme liquidity shortages thanks to the prepared reserve.
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The Key Point is Being a “Currency”
A major difference between Pi and other cryptocurrencies is that Pi itself has the concept of emerging as a “currency” and uses its fiat-like nature to secure liquidity. For example, with fiat currencies (like the dollar), central banks hold reserves, but in the case of Pi Network, it can be said that a system is in place to generate liquidity from within the network, driven by the community.
Ensuring Stability with GCV (Global Consensus Value)
Pi Network anticipates setting a value standard agreed upon within the community, called “GCV (Global Consensus Value),” from the outset. Unlike existing cryptocurrencies that fluctuate wildly like the stock market based solely on supply and demand, the characteristic feature is forming a consensus within the community beforehand to “use this value as a standard.”
Of course, market price fluctuations will not be zero, but there is a possibility of suppressing confusion caused by huge volatility and reducing the increase in user transaction risk. This paints a vision where users can use Pi as a daily payment method with peace of mind.
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Stable Value Supported by the Community
Unlike fiat currencies issued by governments, this GCV does not directly depend on the policy interest rates or monetary policies of public institutions. Rather, the innovative point is that it is backed by the agreement among the vast number of Pioneers (users) participating in the Pi Network and through the actual use for goods and services. In other words, it can be said that the value of Pi demonstrates the true nature of currency, which is “established precisely because everyone recognizes and continues to use it.”
Similarities with Stellar’s Technology: Building a System to Support Liquidity
Pi Network is said to have similarities with Stellar in some technical requirements. Stellar has its own cryptocurrency, XLM, and provides mechanisms like liquidity pools and multi-currency exchange functions to ensure its liquidity. It is said that Pi Network is also building the foundation for a global payment network by referencing such prior examples.
Specifically, by referencing Stellar’s “XDR” software and mechanisms and combining them with Pi’s value management and supply adjustment, they are attempting to build a system that can smoothly process even large-scale transactions.
Pi Network Use Cases: From Real Business to Person-to-Person Transfers
For Pi Network to truly become a “currency,” its use in commercial transactions is essential. Not only person-to-person transfers between users, but also the adoption of Pi payments by various services and stores will increase its value as a currency. Already in the beta phase, many users worldwide have created accounts and formed a community. It is expected that as the official launch progresses, the number of businesses and stores implementing Pi payment systems will further increase.
Role of Merchants
In Pi Network, the more instances where merchants and service providers accept Pi and exchange it for goods and services, the stronger the real demand for the currency becomes. This also leads to stability as a circulating currency and is a crucial point for Pi. Many cryptocurrencies still have limited real demand and are mostly held for investment purposes, but Pi’s philosophy is “everyday use.” Therefore, how actively the user and merchant communities continue to participate will be the key to the project’s success.
Summary: Pi Network Paving the Way for a New Era of Digital Currency
Pi Network is a large-scale project aiming to be more than just a cryptocurrency—it seeks to be a globally usable “currency” itself. Through plans to allocate 1 billion Pi for liquidity, stabilize value with GCV, and utilize technology referencing successful cases like Stellar, it is attempting to support a wide range of use cases not found in existing cryptocurrencies.
Ultimately, a society may arrive where users worldwide use Pi for real transactions such as shopping and service use. The key to this lies in the community’s enthusiasm and the spread of spontaneous actions by individual Pioneers to “use and accept Pi as a real currency.” If this vision is realized, Pi Network may mark a significant step in the history of digital currency.