In the central province of Quang Ngai, a café owner is raising eyebrows by accepting payments in the cryptocurrency 0.049 Pi, which is part of the Pi Network currently under investigation. The owner joined the Pi Network in 2021 and has been allowing customers to pay using the cryptocurrency since last year.
However, this move is in clear violation of Vietnam’s stance on cryptocurrencies. The State Bank of Vietnam has repeatedly warned against the use of cryptocurrencies as a legitimate means of payment, stating that they are risky and not protected by law.
Despite the warnings, the trend has caught on in other parts of the country as well. In Quang Binh, a shop selling used phones and computers has also begun accepting payments in Pi. The shop owner explained that 50-80% of the payment should still be made in cash, with the remaining amount payable in 500-2,000 Pi, depending on the item’s configuration, model, and age.
Since July 2022, Pi users have been able to transfer the cryptocurrency between accounts, which has contributed to the rising popularity of using Pi for transactions. The topic of “exchanging Pi for goods” has become a hot topic in online communities, with many websites abroad facilitating the exchange of goods based on a “consensus” approach.
The “consensus exchange” involves individuals exchanging Pi with each other as a form of gifting, rather than as a monetary transaction. Some have used this method to order electronic devices from foreign countries, primarily China, and then partially pay for them in Pi upon arrival in Vietnam, with the rest being settled in cash.
While some sellers are open to accepting Pi as part of the payment, there are limits. For small-value items, sellers generally accept no more than 50% in Pi, and for larger purchases, the acceptable Pi payment is capped at 15%. This cautious approach by businesses is due to the fact that cryptocurrencies are not recognized as legal tender in Vietnam, and issuing, trading, or using them for payment can result in significant fines, with penalties of up to VND100 million (approximately US$4,240).
Despite the growing popularity of Pi, authorities are keeping a close eye on Pi-related activities. Le Xuan Minh, vice head of the Department of Cybersecurity and High-Tech Crime Prevention, has revealed that police in various localities are actively monitoring the situation. Additionally, there have been concerns raised about the cryptocurrency’s lack of transparency and the potential for fraudulent activities and data collection.
As the Pi Network continues to gain traction, both businesses and individuals in Vietnam are treading a risky path, with regulators poised to take action against any violations of the country’s cryptocurrency regulations.
As the use of Pi and other cryptocurrencies continues to gain momentum in Vietnam, authorities are facing a challenging task of monitoring and regulating the rapidly evolving digital currency landscape. The Pi Network’s explosive growth in 2021 and its subsequent integration into local businesses have prompted both supporters and critics to voice their opinions on its potential impact on the country’s financial ecosystem.
Advocates of Pi argue that its decentralized nature allows for greater financial inclusion, especially for those who may not have access to traditional banking services. They believe that adopting cryptocurrencies can help drive economic growth and innovation in the country. However, skeptics and critics have raised concerns about the lack of oversight and transparency associated with blockchain-based currencies like Pi. There are worries that it could be exploited for fraudulent activities or data collection, as well as its potential connection to pyramid schemes.
The Vietnamese government’s cautionary stance on cryptocurrencies is well-founded, as it seeks to protect consumers and maintain the stability of its financial system. Without proper regulation, the uncontrolled proliferation of cryptocurrencies could lead to financial risks and potential loss of funds for unsuspecting individuals.
Despite warnings and ongoing investigations, the allure of using Pi for transactions and payments persists. The appearance of websites abroad facilitating “consensus exchange” has further fueled interest in this alternative form of payment. However, it’s crucial for businesses and individuals alike to be fully aware of the risks involved, including the potential for significant fines and penalties if they engage in cryptocurrency-related activities in violation of existing laws.
The Vietnamese authorities are actively keeping a close eye on the situation, and it is likely that further actions will be taken to enforce the ban on using cryptocurrencies as legal tender. Police efforts to monitor Pi-related activities will likely intensify, and any signs of coercion or fraudulent schemes will be addressed to protect citizens from potential financial harm.
As the debate around cryptocurrencies and Pi in Vietnam continues, the government may explore the possibility of developing a clear regulatory framework to address the challenges and opportunities posed by digital currencies. A balanced approach that fosters financial innovation while safeguarding consumer interests will be crucial in shaping the country’s response to the growing cryptocurrency trend.
Overall, the use of cryptocurrencies in Vietnam, including Pi, remains a complex and contentious issue. While some businesses and individuals are embracing this alternative form of payment, the risks associated with using unregulated digital currencies cannot be ignored. As the situation develops, it will be crucial for all stakeholders, including regulators, businesses, and the public, to engage in an informed and constructive dialogue about the future of cryptocurrencies in Vietnam’s financial landscape.
Source: VnExpress
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