Virtual Currency (often referred to synonymously as Digital Currency, Credits or Points) is a form of currency exchanged electronically, typically set up as credits and used in relation to a specific Video Game or Virtual World.
Depending on its implementation and purpose, a Virtual Currency is usually comparable to a loyalty program, customer rewards plan or coupon system, especially if the units of value are represented by a physical denomination rather than a single account balance. The perfect example of this would be Canadian Tire money, as it demonstrates some key criteria of Virtual Currency:
- it is redeemable only at a particular location or via a specific platform (i.e. at Canadian Tire stores or their online shop), this location/platform is comparable to a "Virtual Economy"
- it can not be redeemed directly for real-world currency (i.e. Canadian Tire will not and does not need to redeem Canadian Tire money with real US or Canadian Dollars, or any other currency)
- it is denoted in very small amounts to deter/detect fraud and theft (most denominations issued worth < $1, largest token worth at most $2)
MONEY 2.0 is a mutual credit concept specifically designed to replace the current monetary system (in which the power to issue money is a monopoly exercised by banks). In MONEY 2.0, anyone can issue money who is willing to exchange products or services.
MONEY 2.0 offers the following features:
- Availability: MONEY 2.0 is automatically created through trades, therefore it is easily available where needed, and an economic crisis induced by the misallocation of money is impossible.
- Stability: Since those who issue money are also required to sell an equal amount of goods and services, the amount of currency in MONEY 2.0 automatically keeps step with the value of available goods. This removes the prime reason for inflation.
- Impartiality: Since the power to issue MONEY 2.0 rests with all market participants, MONEY 2.0 isn't vulnerable to the manipulations of a few.
- Fairness: In MONEY 2.0, the power to issue money is relative to each participant's economic productivity. Since the availability of money does not depend on borrowing, the total amount of interest in the system is significantly reduced, and the likelihood, that money is accrued by those who require it as an exchange medium, is increased.
- Independence: MONEY 2.0 does not in any way rely on the traditional financial sytem - therefore, it cannot be affected by a crash or "crisis" of traditional currencies.
- Compatibility: MONEY 2.0 is open for exchange against other currencies (old and new).
- Grassroots: MONEY 2.0 currencies can be launched and run by any person or institution, without cooperation or even permission of an existing institution or authority.
- Scalability: The MONEY 2.0 concept can be used for any size currency - from family money (with only a handful of participants) to a large commercial market involving millions of traders.
- Transparency: The software for running MONEY 2.0 is open source, and all relevant system data - including the costs of administrating the currency - are public. Unlike the traditional money system, there are no hidden costs.
- Money 2.0: http://www.money20.org/
With the impending implosion of the usury-based, global money system, now is the time to seek a new way of 'doing' money, one not based on debt and controlled by a global monetary elite that seems happy about destroying our planet in the pursuit of profit.Conventional money is created as debt by private financial institutions for their own profit-making purposes, not as a public service. This is the root cause of the economic, social and environmental problems that beset us. The amount of debt determines the quantity of money, which has nothing to do with the amount of money we need to live decent lives.CES money is 'created' by its users so it can never be in short supply. So long as you can offer something of value you can have from the community goods and services of like value.
- Community Exchage System (CES): http://community-exchange.org/
- Complementary Currency (CC): http://www.complementarycurrency.org/ccvideo.html (supports creation of many separate currencies)
Sounds like a decent proposal on its face, but strongly advocates an implanted micro-chip which is certainly not a good idea.
- EqualMoney: http://equalmoney.org/
PaySwarm is an open standard web platform that enables web browsers and internet devices to perform micropayments and copyright-aware, peer-to-peer digital media distribution.
- Amazon Coins: http://www.amazon.com/gp/product/B0096E8CQA/ref=amazon_coins_landing_coinsdp | FAQ
- Amazon launches virtual currency called "Coins", gives 10 million away free to US Kindle owners: http://www.dailymail.co.uk/sciencetech/article-2324188/Amazon-launches-virtual-currency-called-Coins-gives-tens-millions-away-free-US-Kindle-owners.html
- Amazon Launches Its Own Currency to Make It Easier to Spend on the Kindle: http://www.wired.com/business/2013/02/amazon-coins-currency/
- Facebook Credits: http://www.facebook.com/credits/
- Facebook Credits FAQ: http://www.facebook.com/help/?page=132013533539778
Failed Virtual Currencies
- Flooz: Flooz.com
- InternetCash: http://www.internetcash.com/
- Beenz: Beenz.com
- BCmoney: http://bcmoney.org
MotionEmpire is an impressive site which, although clearly cobbled together, represents a closer step towards Semantic Web enabled Online Video... also contains alot of fresh Movie & TV content, often times content not yet released). On top of the
- MOTION EMPIRE: http://www.motionempire.com
Bitmunk is an independent music site powered entirely by PaySwarm transactions.
- Bitmunk: http://www.bitmunk.com
- TP's Bitcoin Calculator: http://tpbitcalc.appspot.com/ (calculate bitcoins earned .vs. energy expended)
- Bitcoin library for PHP: http://www.nostate.com/3962/bitcoin-php-a-php-library-for-bitcoin/
- Rewards Canada: http://www.rewardscanada.ca/ | Top Credit Cards of 2011
- List of popular Canadian rewards programs: http://www.canadaloyalty.com/Office/site_map.html
- Digital Currencies, Crypto-finance and Open Source: http://disattention.com/78/digital-currencies-crypto-finance-and-open-source/
- P2P Currency Systems: http://p2pfoundation.net/P2P_Currency_Systems
- PlayMoney: http://www.juliandibbell.com/playmoney/ (an early digital currency project)
- Follow The Money: http://www.brainpickings.org/index.php/2010/04/20/follow-the-money/
- David Chaum - List of Articles: http://www.chaum.com/articles/list_of_articles.htm (on digital cash in general)
- David Chaum - Patents Filed: http://www.chaum.com/patents.htm (e-cash/opencoin)
- Beyond Facebook Gifts - Virtual Currencies 101: http://mashable.com/2008/12/18/virtual-currency/
- Expedia Rewards Redeeming for Hotels & Airlines – My Hotel Redemption Experience: http://loyaltylobby.com/2012/07/13/expedia-rewards-redeeming-for-hotels-airlines-my-hotel-redemption-experience/
- wikipedia: Virtual currency
- wikipedia: Internet currency
- wikipedia: Gamertag#Gamertag
- wikipedia: Cryptonomicon
- wikipedia: S&H_Green_Stamps
- wikipedia: ORCA (Internet currency platform)
- The Free Competition in Currency Act of 2011: http://www.freebanking.org/2011/09/13/the-free-competition-in-currency-act-of-2011/
- The quest for an e-Currency: http://articles.cnn.com/1999-09-28/tech/9909_28_global.e.currency.idg_1_credit-card-debit-global-internet-project?_s=PM:TECH
- Virtual Currency In China Is A $2 Billion Economy: http://www.businessinsider.com/virtual-currency-in-china-is-a-2-billion-economy-2009-7
- Man Pays Record $330,000 for a Virtual Space Station: http://mashable.com/2009/12/31/crystal-palace-space-station-sale/
- Virtual Currency Trade Legalized, New Business Model Likely to Come out: http://news.mmosite.com/content/2010-01-15/lineage_virtual_currency_trade_legalized_new_business_model_likely_to_come_out.shtml
- ebay - Omidyar Point System: http://www.zimbio.com/Omidyar+Point+System/articles/2/eBay+For+12+Years
- FacePal -- How Facebook Could Rival PayPal (2009): http://mashable.com/2009/03/28/facebook-virtual-currency/
- Facebook to Take 30% Cut of Developers’ Facebook Credits Revenues (2010): http://mashable.com/2010/02/25/facebook-credits-share/
- Facebook's virtual currency conundrum: http://econsultancy.com/blog/5029-facebook-s-virtual-currency-conundrum
- Expanding Our Commitment to Facebook Credits: http://developers.facebook.com/news.php?blog=1&story=364
- Facebook Consolidates Its Virtual Currency with Facebook Credits: http://www.readwriteweb.com/archives/facebook_consolidates_its_virtual_currency_with_facebook_credits.php?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+readwriteweb+(ReadWriteWeb)
- Facebook Hopes Credits Make Dollars: http://www.nytimes.com/2010/09/23/technology/23facebook.html?_r=1
- Expanding Facebook Credits: http://developers.facebook.com/blog/post/416
- Trademark Application For Facebook Credits Reveals Globe Coin Logo And Other Details: techcrunch.com/2010/03/24/trademark-facebook-credits-logo/
- Could Wikileaks scandal lead to new virtual currency?: http://www.cio.com.au/article/371036/could_wikileaks_scandal_lead_new_virtual_currency_/
- VIRTUAL MONEY IN ELECTRONIC MARKETS AND COMMUNITIES: http://126.96.36.199/orman/publications/virtualmoney.pdf
- I Want My Virtual Currency: http://seekingalpha.com/article/281501-i-want-my-virtual-currency
- I just got hacked - any help is welcome! (25,000 BTC stolen): https://bitcointalk.org/index.php?topic=16457.0
- The Story of DigiCredit.com: http://www.impulsecorp.com/the-story-of-digicredit-com
- Kwedit Launches The "First" Completely Unreliable Payment Network: http://techcrunch.com/2010/02/03/kwedit-launches-the-first-completely-unreliable-payment-network/ (not really the first)
- Buying Virtual Currency in Second Life: http://www.youtube.com/watch?v=v313txB3dzA
- Work in Second Life - The Evolution of the Virtual Workplace: http://www.youtube.com/watch?v=or_b-W0uN5k
- Virtual Currency - Seed Of Poor Spending Habits?: http://www.npr.org/2011/07/13/137818171/virtual-currency-seed-of-poor-spending-habits
- American Express Buys Virtual Currency Monetization Platform Sometrics For $30M: http://techcrunch.com/2011/09/20/american-express-buys-virtual-currency-monetization-platform-sometrics-for-30m/
- Credit Cards Are Killing Creativity - The Case for a New Online Payments System: http://www.readwriteweb.com/enterprise/2011/08/credit-cards-are-killing-creat.php
- Changing Models - A Global Perspective on Paying for Content Online: http://blog.nielsen.com/nielsenwire/global/changing-models-a-global-perspective-on-paying-for-content-online/
- Bitcoin 2013 conference - the future of money?: http://www.zdnet.com/bitcoin-2013-conference-the-future-of-money-7000015685/
- Bitcoin comes under scrutiny from New York regulators: http://news.cnet.com/8301-1023_3-57598220-93/bitcoin-comes-under-scrutiny-from-new-york-regulators/
- Gavin will visit the CIA: https://bitcointalk.org/?topic=6652.0
- CIA trying to co-opt bitcoin developers?: https://bitcointalk.org/index.php?topic=169921.0
- BitCoin CIA Connection: http://www.youtube.com/watch?v=K5VC58gjnjY
- Black Technology -- Bitcoin P2P Currency - The Most Dangerous Project We’ve Ever Seen: http://blog.launch.co/blog/l019-bitcoin-p2p-currency-the-most-dangerous-project-weve-ev.html
- The Understanding Economy: https://www.linkedin.com/pulse/understanding-economy
- Phase Two of P2P Payments via ACH Effective March 20: https://www.nacha.org/news/phase-two-p2p-payments-ach-effective-march-20
- Mobile P2P users in the U.S. will grow from 69 million to 126 million by 2020: http://www.thepaymentsreview.com/a-look-at-p2p-payments
- A third of customers ‘want more than just points for their loyalty’: https://www.netimperative.com/2020/03/10/a-third-of-customers-want-more-than-just-points-for-their-loyalty/
Signs it’s time to sell?
- Starbucks Envisions Caffeine-Based Currency: http://adage.com/article/cmo-strategy/starbucks-envisions-a-caffeine-based-currency/299673/
- Introducing Virtual Currency Girls, the new electronic money-themed, educational idol group: https://japantoday.com/category/entertainment/introducing-virtual-currency-girls-the-new-electronic-money-themed-educational-idol-group
- Kodak creating KodakCoin, develops its own cryptocurrency system: https://www.usatoday.com/story/money/nation-now/2018/01/09/kodak-creating-kodakcoin-develops-its-own-cryptocurrency-system/1017855001/
- Is Satoshi Nakamoto Turning in his Virtual Grave?: https://medium.com/datadriveninvestor/is-satoshi-nakamoto-turning-in-his-virtual-grave-d3282bc9e2ee
- Apollo Fintech -- gold-backed cryptocurrency: https://aplfintech.com/about-us/
- Zimbabwe partnering up with fintech for gold-backed digital currency: https://www.the-star.co.ke/business/africa/2020-03-19-zimbabwe-partnering-up-with-fintech-for-gold-backed-digital-currency/
- EU set to unveil plans for bloc-wide digital wallet - FT: https://www.reuters.com/business/finance/eu-set-unveil-plans-bloc-wide-digital-wallet-ft-2021-06-01/
- In Sweden, technology is close to making cash a thing of the past. All aboard?: https://sweden.se/life/society/a-cashless-society
- Sweden's Cashless Experiment - Is It Too Much Too Fast?: https://www.npr.org/2019/02/11/691334123/swedens-cashless-experiment-is-it-too-much-too-fast#:~:text=And no one is dropping,coins jingling in their pockets.
- wikipedia: Loyalty program
- wikipedia: Canadian Tire money
- Facebook patent - Giving gifts and displaying assets in a social network environment: http://tinyurl.com/76mmbvd
- Facebook patent application - Virtual Currency platform: http://www.trademarkia.com/f-77934145.html
- Bing Gordon - The Zynga/Facebook Credits Battle Was The Cuban Missile Crisis Of Tech: http://techcrunch.com/2011/05/24/bing-gordon-the-zyngafacebook-credits-battle-was-the-cuban-missile-crisis-of-tech/
- Facebook privacy concerns - fact or phobia: http://www.seedcatalyst.com/joomla/market-trends/facebook-privacy-concerns-fact-or-phobia
- wikipedia: Hub Culture
- Flooz Bluez - online currency website to file bankruptcy: http://www.ecommercetimes.com/story/13107.html
- InternetCash.com patent - Anonymous on-line cash management system: http://worldwide.espacenet.com/publicationDetails/biblio?CC=US&NR=7814009&KC=&FT=E&locale=en_EP
- How Can Kids Buy Stuff on the Web? Ask InternetCash: http://www.businessweek.com/smallbiz/0003/ep000307.htm
- What It's Like to Work at Beenz.com Inc.: http://www.computerworld.com/s/article/49034/What_It_s_Like_to_Work_at_Beenz.com_Inc.
- Beenz.com sold in multi-million dollar deal: http://www.theregister.co.uk/2001/10/05/beenz_com_sold_in_multimillion/
- The telephone is the tool - A cashless society is reaching for its mobile phone: http://www.economist.com/node/1101473?story_id=E1_TTDTQSP
- Beenz means business: http://news.bbc.co.uk/2/hi/business/297133.stm
- Don't have a credit card? Can't buy stuff online?: http://digicredit.com