PINETWORK: COMPARATIVE ANALYSIS OF INTERNATIONAL REMITTANCE FEES

Pi is the payment method for the world's largest payment network. After the Open Mainnet launch, I would like to share an analysis regarding "remittance fees" that will be considered outside the Pi Network, and remind pioneers that if the consensus value is firm, the Pi Network can be perceived externally as a very positive and powerful ecosystem. The consensus value of Pi should be as high as possible within a reasonable range. The higher it is, the more it enhances the sustainability of the community. However, today I will explain why a high consensus value does not have a significant negative impact outside the network. About a week ago, the Pi Community Developer Group officially disclosed through a document that Pi is a stablecoin project based on global consensus value. For example, with the consensus value of $314,159 and a fee of 0.00001 Pi, let's proceed with an analysis based on these assumption. 1.Pi Network Fee Calculation - When the consensus value of the Pi Network is $314,159** and the fee is set at **0.00001 Pi - Fee Calculation**: $314,159 × 0.00001 = **$3.14159** - Therefore, the remittance fee is calculated as **$3.14. ### 2. **Remittance Using Traditional Financial Systems** **a. Bank Transfer (SWIFT):** - **Fee**: When transferring from the U.S. to Africa, a remittance fee between $20 and $50 is typically charged. An additional fee of $10 to $30 may be incurred at the receiving bank. - **Exchange Rate Difference**: Banks often make profits by applying a 2-5% difference in the exchange rate during remittance. For instance, when transferring $1,000, around $50 may be lost due to exchange rate differences. - **Total Cost**: The total cost of remittance is estimated to be between $50 and $130. **b. Western Union:** - **Fee**: Western Union’s remittance fee ranges from approximately $50 to $100. - **Exchange Rate Difference**: Additionally, a 2-5% difference in the exchange rate may occur. - **Total Cost**: The total cost through Western Union can be between $70 and $150 or more. ### 3. **Remittance Using Pi Network** - **Fee**: The remittance fee using Pi Network is **$3.14**. - **No Exchange Rate Difference**: Since the transfer is made using blockchain technology, no exchange rate difference occurs, and the payment can be received in stablecoins. ### 4. **Cost Comparison** - **Traditional Financial System (Bank Transfer)**: $50 to $130 - **Traditional Financial System (Western Union)**: $70 to $150 - **Pi Network**: $3.14 ### 5. **Cost-Saving Effect** Using Pi Network for remittance results in a **95% to 97%** cost-saving effect compared to traditional financial systems.

6. **Other Considerations** - **Speed of Transfer**: Pi Network enables transfers to be completed in 2-3 seconds. - **Accessibility**: With just a smartphone and internet connection, Pi Network can be used for remittance from anywhere. - **Transparency and Security**: The blockchain-based transactions provide high security and transparency.

Conclusion Therefore, even people who do not own Pi after  understanding that Pi offers highly competitive low fees. It should be recognized that these kinds of remittances will continually occur on a large scale globally, at the country level.

When engaging in remittance, nations,  the only consideration is how many available transport trucks (liquidity in Pi) are needed. They can simply exchange the amount they wish to send (load it onto the truck) and transfer it.