Virtual currency replacement for Real Cold Hard Cash?

Virtual currencies will become a dominant global curreny. Not possible? These guys in China might be able to do it.

In view of this article from Asia Times online, Chinese government central bank is worried that the rise a popular virtual currency in China could affect the value of the yuan. "QQ" coins that what they call it issued by China's largest instant-messaging service provider, Tencent, mainly used for transaction of virtual items. However see the opportunity, many third party websites are expanding its use into other unintended areas.

"The QQ coin is challenging the status of the renminbi (yuan) as the only legitimate currency in China." - Public prosecutor Yang Tao, Asia Times Online

And it is believe that the Chinese central government would act to "limit the application of QQ coins" and assure that their use is restricted to the virtual world.

"QQ " coins can be easily purchased with a bank, telephone or "QQ" card at an official price of 1 yuan per coin. They were originally designed to pay for Tencent services such as electronic greeting cards, online games and anti-virus software. But with no law built around their usage, "QQ" coins found their way into other illicit services like online gambling and online sex chats.

So far, from the article "QQ" coins hasn't got any impact on the yuan. Nevertheless there is a huge potential of using the coins for real goods, but judging from the way Tencent would want to reduce financial risks, chances of it becoming a Virtual Bank of China are silm.


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