Pi coin is approaching the ATL of 0.40 USD, and the Pi Network community has proposed the issuance of a "USD stablecoin" plan.

The price of Pi Network (PI) has further declined, reporting at 0.4216 USD during the early European trading session today (30), close to the historical low of 0.4000 USD. The Pi community has recently proposed the issuance of a 314,159 USD stablecoin plan, ushering in a new era of global payments and digital identification for Pi coin.

Pi Network's $314,159 stablecoin vision

The Pi Network's plan to issue a USD stablecoin has been emphasized by community members such as @Diazag3, positioning the Pi Network not only as a cryptocurrency platform but also as the infrastructure for the future of decentralized finance (DeFi).

The proposed stablecoin is symbolically pegged to a value of 314,159 USD, inspired by the mathematical constant π (pi). This figure is not arbitrarily set but reflects the community's desire for a high-value, consensus-driven currency that operates solely within the Pi ecosystem.

Unlike traditional stablecoins that are pegged to fiat currencies such as the US dollar or the euro, Pi's stablecoin is designed to serve as an internal benchmark for transactions, smart contracts, and decentralized applications (DApps). Its purpose is to create a predictable and trustworthy medium of exchange to support cross-border economic activities.

One of the most innovative aspects of the Pi Network stablecoin model is the integration of a self-KYC (Know Your Customer) protocol. The Pi Network does not rely on a centralized verification system, but instead allows users to verify their identification within the ecosystem using decentralized tools.

This method enhances privacy, reduces onboarding friction, and ensures that only verified users can participate in transactions. By embedding self KYC into the stablecoin framework, the Pi Network creates a secure environment for peer-to-peer payments, merchant interactions, and financial services.

A stablecoin pegged to $314,159 seems ambitious, but its symbolic value serves strategic purposes. It stabilizes the Pi ecosystem around a shared belief in long-term utility and community-driven valuation. This model stands in stark contrast to the volatile market pricing, which often undermines user confidence and adoption rates.

Supporters believe that a high-value anchoring mechanism encourages users to hold and use Pi coin within the ecosystem, rather than trading externally. This behavior helps promote stability, strengthen internal commerce, and aligns with Pi Network's goal of building a self-sufficient digital economy.

For stablecoins to succeed, merchant adoption is crucial. The Pi Network has witnessed thousands of vendors participating in events like PiFest, where they use Picoin to exchange goods and services. The introduction of stablecoins further enhances reliability, allowing merchants to consistently price products and manage inventory without being affected by market fluctuations.

Despite the bright prospects, the stablecoin project still faces multiple challenges:

1. Regulatory Clarity: Governments may scrutinize high-value stablecoins, particularly those used for cross-border payments.

2. Liquidity Management: Maintaining a stable peg requires a mechanism to balance supply and demand within the ecosystem.

3. Merchant Consistency: Ensuring that suppliers adhere to cross-regional and cross-industry pegged values is crucial for trust.

Addressing these challenges requires technological innovation, community coordination, and transparent communication from the Pi Core Team (PCT).

Pi Network July Coin Unlock

Pi Network launched its token unlocking plan in July and it will continue throughout August. In July, Pi coins worth approximately $28 million were unlocked, and this figure will increase by more than 10 times in August.

Although the supply of Pi coin had previously been stagnant, the unlocking plan will significantly increase it, bringing it closer to the maximum supply of 100 billion. The additional supply may have a negative impact on the price of Pi coin, which is currently nearing its historical low.

PI Price Analysis

PI coin analysis shows that since reaching an all-time high in February, the price has fallen below the descending resistance trend line.

It has twice fallen to the historical low of $0.40, but each time it rebounded, forming a very long lower shadow (green icon).

However, the third time was not smooth, as the price of PI coin is currently facing the risk of breaking through the resistance area from the $0.40 level.

In June, the momentum indicator showed a bullish divergence, suggesting that the trend might reverse. However, the reality is different, as the Relative Strength Index (RSI) has already broken through the trend line.

Therefore, a collapse may occur in August, setting a historical new low. As there is currently no support below the region, a breakdown could trigger a significant drop.

(Source: Trading View)