Digital Currency

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Digital currencies are electronically created and stored tokens of value typically converted to fiat money (money that is considered legal tender by governments).  The Virtual worlds of the future will undoubtedly use some form of digital currency for the purchase of goods and services much like they do today.  The rise in decentralised crypto currencies such as Bitcoin is challenging the definition of legal tender whilst encouraging adoption of digital currencies to go beyond the purchase of virtual items to real world ones.

As a Real Cash Economy, Entropia Universe was one of the pioneers of digital currencies, creating its own currency called PED (Project Entropia Dollars) which has a fixed exchange rate to the US dollar. Other online environments are increasingly using virtual currencies as a means to purchase digital content and it seems likely that the future will involve a common regulated digital currency that is used universally through interconnected digital services and products.

Crypto currencies seem to be a good option for such currencies because of the use of cryptography as a means of securely transferring the amount and block chains which act as the decentralised global ledger. Virtual transactions require more frequent and instant transactions, which partly explains the conversion of in world money from real world currencies across the world.  Digital crypto currencies such as Bitcoin are a fast and secure means of transferring money across multiple digital environments and geographic borders.

Interconnected virtual worlds that provide a variety of goods and services, both digitally and in the real world, will require a virtual coin and all the traditional financial services associated with a regulated currency. This will lead to economic opportunities that will drive further user adoption and content creation.  

 

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