Web3 Asset Network (WAN) and Pi Network have formed a strategic partnership to create a decentralized, secure, transparent, and efficient model for converting central bank digital currencies (CBDCs) into Pi coins. This groundbreaking initiative aims to bridge the gap between the traditional and Web3 economies, facilitating seamless integration and empowering individuals to participate in the emerging digital landscape.
The Process:
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CBDC to Pi Conversion: Consumers send their CBDC to a designated “wrapping” service provider for conversion into Pi coins.
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Locked CBDC: The “wrapping” service provider locks the corresponding amount of CBDC to maintain a 1:1 reserve ratio with the newly minted Pi coins.
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Pi in Consumer Wallets: The converted Pi coins are transferred directly to the consumer’s Pi wallet.
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Pi for Payments: Consumers can utilize their Pi coins to make payments to merchants who accept Pi as a payment method.
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Merchants Receive Pi: Merchants can store the received Pi coins in their merchant token wallets.
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Pi to CBDC Conversion: Merchants have the option to convert their accumulated Pi coins back into CBDC if needed.
Key Components:
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“Wrapping” Service Provider: These specialized entities facilitate CBDC conversion services, ensuring compatibility with various blockchains.
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Consumers: The individuals who utilize the Web3 Asset Network to convert their CBDC into Pi coins.
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Consumer Token Wallet: The Pi wallet where consumers store their Pi coins.
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Consumer Deposits Tokens: The CBDC wallet where consumers keep their traditional fiat currency.
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Tokenised Asset Network: A network of digitized assets, including real estate, stocks, bonds, and other valuable items.
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Merchant: The seller who accepts Pi coins as a payment method.
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Merchant Token Wallet: The wallet where merchants store their accumulated Pi coins.
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Smart Contracts: Self-executing agreements that govern transactions between consumers and merchants.
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Merchant Uploads Digital Assets: Merchants can upload representations of their digital assets, such as artwork or real estate, onto the encrypted Pi blockchain.
Benefits of the Model:
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CBDC Bridge: CBDC plays a pivotal role in bridging the traditional and Web3 economies, enabling seamless deposits and withdrawals of funds.
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Asset Tokenization: Asset tokenization empowers individuals to fractionalize their assets and sell them on the Pi blockchain, promoting equitable ownership.
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International Payments: Major payment services like Visa and MasterCard offer “wrapping” services to facilitate CBDC conversion into various cryptocurrencies.
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Smart Contract Enforcement: Smart contracts in Pi ensure transparent and secure transactions between consumers and merchants.
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Governmental Oversight: Governments can impose taxes on CBDC and Pi transactions to manage usage and ownership, fostering sustainable growth.
With Web3 gaining global traction, Pi Network and this innovative model could revolutionize digital payments and promote the internationalization of currency. This partnership marks a significant step towards a more inclusive and decentralized financial ecosystem. Read Something Similar
