China Restricts Virtual Currencies
Filed in archive Internet on July 6, 2009
A number of news sources (Metaverse Journal, CNN, Venturebeat) are covering new restrictions on virtual currencies in China.
China's Ministry of Commerce has put an end to the exchange of virtual currencies for real money in China.
The virtual world Second Life is the most well known of the virtual economies. But many others exist. Second Life has a virtual currency called Linden Dollars. Linden Dollars can be earned for jobs, goods, and services in Second Life and exchanged for U.S. Dollars at a rate (at the moment) of about 259 Linden Dollars per US Dollar. Except in China now.
One motive for China's actions is a practice called "goldfarming." It involves Chinese workers in near sweatshop conditions playing games. They build up virtual currency or game status and then sell it for real money. China's new rules put an end to that practice - and that's probably good for most game companies. But there are other economic implcations that are more difficult to predict.
© thms.nl
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