A report recently published by China Economic Daily News clarified that the rumor circulating on the internet claiming that “Pi coin” altcoins can be exchanged for yuan is completely false.
The Economic Daily is known as a state-owned newspaper in China that specializes in economic reports.
The rumor was sparked by a misinterpretation of a video posted online. The person who posted the video mistakenly identified the “Pi-type approval department” office window at a local community service center as the teller window at a physical bank branch.
Chinese internet police in various regions have issued risk warnings, stating that the so-called free mining of “Pi coins” is nothing more than a scam aimed at selling users’ personal information for financial gain.
Liang Si, a researcher at the Bank of China Research Institute, warned that speculation on “Pi Coin” will not lead to instant wealth. He warned that significant losses could occur.
According to Si, virtual currencies such as “Pi Coin” are not backed by any real assets or productive labor, lack a solid value backing, and are often used as a means of speculation. Moreover, according to the researcher, such currencies carry various risks such as serious price fluctuations, lack of information, transaction security, regulatory issues and liquidity problems.
Lou Feipeng, a researcher at the China Postal Savings Bank, stated that virtual currencies are not real currencies. “The only legal institution for currency issuance in China is the People’s Bank of China,” Feipeng said. “Virtual currencies such as Pi coin are not issued by the People’s Bank of China and therefore do not have any exchange relationship with the RMB.”
*This is not investment advice.