BYD Auto Service Co., Ltd., located in the Yuhua District, is reportedly accepting Pi payments for the purchase of hundreds of cars, trading each vehicle for 0.2 Pi at a Global Consensus Value (GCV) of $314,159.
According to Doris Yin, the Pi Network Global GCV Movement Founder,this initiative has enabled around 40 Chinese Pioneers to drive home in their new cars, marking a significant milestone in the integration of cryptocurrency into everyday transactions.
Yong Chuang Capital has backed this venture with an investment of 40 million RMB, supported by notable financial entities including Gaoling Group, Sequoia Capital, Hongyuan Construction, and Poly Group, in a collaboration confirmed by Li Shao from the Hunan Pi Network Merchants Association.
While the price of 0.2 Pi slightly exceeds the fair market value, it compensates for the flexibility provided to buyers, who are not required to pay upfront but instead sign contracts to pay after the migration of Pi. This strategy is designed to meet the urgent demand for vehicles among Pioneers, who are willing to pay a premium for immediate access.
However, the acceptance of Pi payments raises important regulatory questions. Since 2021, the Chinese government has imposed a comprehensive ban on cryptocurrency transactions, including the operation of exchanges and token issuance. As such, the legality of BYD’s acceptance of Pi coins has come under scrutiny, particularly given the government’s stringent measures to control financial risks.
Last week, the Chinese Supreme Court convened a high-level meeting to address the legal status of cryptocurrencies and the judiciary’s approach to cases involving digital assets. This gathering, attended by leading judicial authorities and legal scholars, underscores a renewed commitment to clarifying China’s enforcement of its crypto ban amid evolving legal challenges.
Meanwhile, Bybit CEO Ben Zhou recently highlighted a 2023 warning from Chinese law enforcement that labels Pi Network as a scam, describing it as a “pyramid scheme” that targets the elderly. This warning comes amidst the launch of Pi’s mainnet and the largest airdrop in crypto history, totaling $12.6 billion in tokens.
Zhou emphasized that many criminals exploit Pi by falsely claiming users can mine for free and defrauding the elderly through misleading schemes. Bybit, a major crypto exchange, has no plans to list Pi, citing these concerns. Other exchanges like OKX and Binance have faced similar backlash from users regarding potential listings of Pi. Despite its strong momentum, Pi Network encounters significant criticism and skepticism from various quarters.
Despite these regulatory hurdles, the underground trading market for cryptocurrencies remains active in China, revealing a persistent demand for digital currencies. The recent transaction at BYD has sparked debates about the recognition of such transactions as legitimate commercial activities, illustrating the tension between traditional regulatory frameworks and the evolving landscape of digital economies.
As the Pi community anticipates a potential surge in the value of Pi coins—with hopes that the price could reach $314,159—the situation highlights the complexity of navigating emerging trading models within a restrictive regulatory environment. The ongoing developments in Changsha serve as a pivotal case study in the intersection of innovation, market demand, and regulation in the cryptocurrency space.
Shogun Lin
