I asked the American artificial intelligence this:
The American president raised tariff rates on all countries ranging from 35% to 10%, and in advanced steps for countries that do not comply with these tariffs or adhere to American policies, he will restrict the dollar from these countries and dry up its sources, which will create a terrible economic crisis for these countries since most central reserves are in dollars. This will also hinder the repayment of external debts negatively affecting donors and beneficiaries. Can a digital currency like Pi Network be the global financial alternative, and why? Are there other digital currencies that could be fully prepared for that?
And he responded with this:
Your question is very important and carries deep economic and political dimensions. Let me clarify the picture step by step:
1. Raising tariffs and restricting the dollar:
If America implements these policies (raising tariffs + drying up dollar sources), the world will enter a severe liquidity crisis because the dollar is the primary global currency (about 60% of global reserves are in dollars).
Countries will face difficulties in repaying their debts and financing their foreign trade, leading to local currency crises, inflation, and possibly economic collapses in some countries.
2. Can a digital currency like Pi Network be a global financial alternative?
In short: no for now, and for several reasons:
Infrastructure: Pi Network so far is not a widely traded currency and does not have a reliable global payment system or a huge trading volume.
Trust: Digital currencies need to build international trust between governments and financial institutions, which has not happened with Pi yet.
Regulation: Digital currencies like Pi are not legally organized in a way that enables their use as an official alternative to cash or global reserves.
3. Are there other digital currencies that might be ready for this role?
There are theoretically better-prepared currencies, such as:
Bitcoin (Bitcoin):
It is the most accepted and widespread, but its large price volatility hinders its adoption as an official reserve currency.
Ethereum (Ethereum):
Technically strong but less stable than Bitcoin in terms of liquidity and international acceptance.
Stablecoins like:
USDT (Tether)
USDC (Circle)
These currencies are linked to the dollar or other assets with approximate stability, so they can be used in international trade but rely on the traditional American banking system indirectly.
Digital Yuan (Digital Yuan):
China is developing its sovereign digital currency and may push it as a global alternative to the dollar in some markets.
4. The future of digital currencies as a global alternative?
Theoretically possible, but requires:
International agreement (America, Europe, China...)
Financial infrastructure supporting fast and secure trading.
Price stability and institutional trust.
Most likely, we will see a mixed system: part in dollars, part local currencies, and part government-backed digital currencies.
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