PostHeaderIcon Real banking coming... really?

Monopoly Game
Yes, this really is news. To anyone who wasn't around during the Second Life banking collapse of 2007, any.

Well, a long-story-made-short for those not in the know...

Among the absolutely most popular activities in SL was in the "game of chance" arena. Probably the most popular was the game of "Tringo" - those machines were all over the grid and more prevalent that casinos - and every casino have a rack of them.

Unfortunately, because Linden Dollars, the Second Life in-game "trading token" can actually be exchanged for First Life legal tender in U.S. Dollars, U.S. Banks became increasingly nervous and jittery due to a law that proclaimed transferring money through the Internet for gambling purposes will get you closed down. Well, it wouldn't be very good if Chase Manhattan and Bank of America and the rest were shut-down because of the LindeX, never-mind the greedy mess they have gotten us into currently.

So, to avoid the banks shutting Linden Lab out, LL put the kerbosh on all "games of chance" on the entire grid. They wracked hell with the in-world economy. If you think the First Life world is in a recession now, you should have been here for that when the SL economy nearly crashed.

There were several reputable in-world "banks" and "stock exchanges" - many over-promising dividend returns. Because of the casino/gambling ban by LL, a run was made on the bank called Ginko. Because the Ginko assets were invested in First Life portfolios - they couldn't be retrieved so quickly. A mob ensued with hoopla and shrill voices. it was more or less a banking 'meltdown" across the Grid.

Within months, Linden Lab proclaimed no banking on the grid unless the proprietors or group can show First Life legal documentation to the effect they know what the hell they're doing.

Which brings us to where we are now. So, along comes this 'news' - which is news for all those not 'in the know':
Real banking coming to virtual worlds: "MindArk PE AB, the company behind sci-fi MMO Entropia Universe will apparently be able to let players conduct real-world banking from within its online game. Of course, Entropia Universe actually features a cash-based economy already, where players can exchange real money for game currency at an exchange rate of 10:1 (ten in-game dollars to one U.S. dollar) and then buy in-game items with the money; the game itself has proven to be incredibly successful, having generated over $420 million last year."

Why do I say it's not news to anyone in "the know"? Because the Grid already has the "MetaCard" and several other means of currency exchange. But, before even the MetaCard and all the rest, there already was a real world bank moving into Second Life: the Danish online investment bank Saxo.

I've never trusted the in-world banks. Way too risky and no fun in it like the "games of chance". Hopefully, that dumb-ass law created and passed by the U.S. Congress to keep us from harming ourselves, which is technically a God-given right if you ask me, might be repealed?

We can only hope and pray, but I wouldn't recommend holding one's breath over it.

via "Real banking coming to virtual worlds - Ars Technica"

blog comments powered by Disqus

Blackthorne™ ≠ inSL

Search This Blog

SL Grid Status