Closed Virtual Currency

Closed Virtual Currency in the E-Commerce Law

Non-convertible (or closed) virtual currency is specific toa particular virtual world, such as a Massively Multiplayer Online Role-Playing Game (MMORPG), and cannot be exchanged for fiat currency under the rules governing its use. Examples: Project Entropia Dollars; Q Coins; and World of Warcraft Gold. All non-convertible virtual currencies are centralized: by definition, they are issued by a central authority that establishes rules making them nonconvertible.

Resources

See Also

• Virtual Currency
• Artificial Currency Unit
• Bitcoin
• International Currency
• National Currency
• Currency Convertible In Fact
• Functional Currency
• Convertible Virtual Currency
• Hard Currency
• Exotic Currency
• Reserve Currency
• Soft Currency
• Fiduciary Currency

Biography

U.S. Gov’t Accountability Office, Virtual Economies and Currencies, Additional Guidance Could Reduce Tax Compliance Risks 39 (2013)