Tags: china | money

Play Money Gets Too Real in China

By    |   Monday, 06 Jul 2009 03:42 PM

In China, the buying and selling of fake currencies used in online gaming has become so widespread that Chinese authorities fear it will negatively affect the real economy.

The virtual money trade in China topped several billion yuan last year, as tens of millions of young people traded virtual goods and credits for real goods and cash. Therefore, China’s government issued new regulations to restrict the trading and use of virtual money, and ban virtual currencies from being exchanged for goods.

Edward Castronova, an Indiana University professor of telecommunications, said he thinks virtual currencies could pose a threat to world economies, and applauded Beijing’s move.

“This action shows that at least one government is concerned about the way virtual worlds challenge its control of society,” Professor Castronova told The New York Times.

“As virtual currencies take over more and more purchasing power, control over the effective money supply shifts from the central bank to the game developers," Castronova said.

While virtual currencies had helped promote online gaming, they have “also brought new economic and social problems,” according to a statement from Beijing, leading the government to move against online gambling and disputes over virtual coins as well.

Last year, U.S. House Financial Services Committee head Barney Frank introduced legislation that would have laid the groundwork for legalized and regulated Internet gambling in the U.S., the San Francisco Examiner reported.

That legislation, delayed because Frank’s committee is dealing with more pressing issues, won’t be discussed until September at the earliest.

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
Economy
In China, the buying and selling of fake currencies used in online gaming has become so widespread that Chinese authorities fear it will negatively affect the real economy.The virtual money trade in China topped several billion yuan last year, as tens of millions of young...
china,money
249
2009-42-06
Monday, 06 Jul 2009 03:42 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved