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Tuesday, 30 June 2009

China Struggles To Nail Down Virtual Cash

Last August, I expressed some doubt that QQ coins represented the future of money for various reasons. Now Finextra reports that on Saturday the Chinese government banned the use of virtual currency, including the dominant QQ coins, to purchase real world goods and services, as well as the use of virtual money for gambling. Its use is now restricted to buying goods and services supplied by the issuer. It seems to be the second ban in this vein, according to Digital Money Forum, the previous one relating to the purchase of real world property and virtual currency trading. Whether this second attempt will rein in the misuse of Chinese virtual cash remains to be seen.

At least the Chinese government has not banned the use of stored value products altogether. Given China's authoritarian stance in some areas, that should be a good sign for the future of e-money.


Posted via email from Pragmatist's Posterous

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