SL Banks are Toast - Yee Haw!

If SL remains relatively obscure then it may escape notice for a while longer.

The Linden$ is "fictional" remember? It is thin air. You start trading it as a commodity and it enters real world and then is subject to real world rules and regs. No reason to do that, because real money can be used in SL.

Currency laws, coinage laws, security laws, sovereignity, commodity laws, tax laws..all of it...we dont need that in SL if its just a game world----a fantasy world.

Business in SL can use Real Money, without tying in the fictional currency.

No the term "Monopoly money" I was referring to that colored paper money you get with the board game.

No idiot would buy that money off you.

Since I brought it up its my term for your quotes to me.

I've used the term "Monopoly money" too, in all my posts on this subject. Its game money. If everyone started using and trading monopoly money, as a substitute of the "current" money it would be a problem.

If SL truly grows bigger and if Lindens$ are being used as a real currency, then it steps on the toes of sovereign countries issuing of "currency" and legal tender.

Even if laws about Virtual reality and property are still vague, that won't stop governments and the FED, IRS and SEC from stepping in.

It's not a philosophical issue with me. "Illegal Currency" and "illegal currency exchange" happens all over the world. They bust them first and sort it out later.
With Sl we can use real money for real business in SL. We don't need to tie the Linden$ to it. The Linden$ can stay in game and then it's just play money. Ficitonal Money---which is exactly how the Linden$ is defined by LL:


You acknowledge that the Service presently includes a component of in-world fictional currency ("Currency" or "Linden Dollars" or "L$", which constitutes a limited license right to use a feature of our product when, as, and if allowed by Linden Lab. Linden Lab may charge fees for the right to use Linden Dollars, or may distribute Linden Dollars without charge, in its sole discretion. Regardless of terminology used, Linden Dollars represent a limited license right governed solely under the terms of this Agreement, and are not redeemable for any sum of money or monetary value from Linden Lab at any time. You agree that Linden Lab has the absolute right to manage, regulate, control, modify and/or eliminate such Currency as it sees fit in its sole discretion, in any general or specific case, and that Linden Lab will have no liability to you based on its exercise of such right.

First rhetoric notwithstanding, Linden dollars are not "fictional" they are intangible, but it is good point. Commodities are generally tangibles and that only strengthens my point in that it means there are NO regulatory laws which apply to the exchange of Linden dollars and US dollars other than general consumer protection laws that are already applicable to Linden Lab generally for providing Second Life. In and of itself the exchange is not a liability for Linden Lab and it provides Linden Lab a useful tool to manage Second Life economy.

Second, rhetoric also not withstanding, SL is not a typical online game world. There are many who would argue it is not a game world at all. As you know it allows people to set up real businesses based on consumption of virtual goods and services. Whether businesses operate on exchangeable Linden dollars or US dollars is irrelevant, it is the kind of business they are conducting and the manner in which they are conducting it which dictates the applicability of real world laws. Eliminating exchangable Linden dollars will not change that.

Not to repeat myself...but....oh well I'll repeat myself:


"You acknowledge that the Service presently includes a component of in-world fictional currency ("Currency" or "Linden Dollars" or "L$", which constitutes a limited license right to use a feature of our product when, as, and if allowed by Linden Lab. Linden Lab may charge fees for the right to use Linden Dollars, or may distribute Linden Dollars without charge, in its sole discretion. Regardless of terminology used, Linden Dollars represent a limited license right governed solely under the terms of this Agreement, and are not redeemable for any sum of money or monetary value from Linden Lab at any time. You agree that Linden Lab has the absolute right to manage, regulate, control, modify and/or eliminate such Currency as it sees fit in its sole discretion, in any general or specific case, and that Linden Lab will have no liability to you based on its exercise of such right."


Keep it fictional and that protects LL and the residents


Here's what Blizzard says:


"You agree that you have no right or title in or to any such content, including the virtual goods or currency appearing or originating in the Game, or any other attributes associated with the Account or stored on the Service. Blizzard does not recognize any virtual property transfers executed outside of the Game or the purported sale, gift or trade in the "real world" of anything related to the Game. Accordingly, you may not sell items for "real" money or otherwise exchange items for value outside of the Game. "


In the case of SL people create things themsleves and have the right to sell them for real money. Why use a fictional currency if you intend to take that money out of the game?

How? SL does not issue currency. The Linden dollar is not currency (and the issuance of currency by sovereign countries should not be in quotes, it's actual currency)
Why? Instead of making vague references to areas of regulatory law without any explanation as to how they are applicable to the exchange of Linden dollars and US dollars, please explain exactly how they are applicable and why the FED would care. I can tell you that the SEC certainly could care less as it has nothing to do with securities law and that comes from a former securities attorney for the SEC (not me, a friend who is familiar with Second Life).

If Sl doesn't implode before then and instead, actually gets huge and become the "3D internet" ...you'll see just how fast it will happen.

Quoting a policy statement by Linden Lab stating that the Linden dollar is fictional currency 1 or 100 times is meaningless in the context of this discourse. Under the law there is no such thing as "fictional currency." If you actually read what you cut and pasted and understand it then it is clear that the Linden dollar is exactly what I said it is, a limited license right to use a feature of Second Life, i.e. an intangible asset. So what exactly is your point?
I'll infer from that response that you can't support your assertions with anything of substance.

No point in my repeating myself. Believe as you like. You apparently want the Linden to be more then play money. I can't imagine why.


The only thing making the Linden$ a real currency will do, is cause major problems, for SL in the future. Not only wil rules and regs get involved, it wil just keep attracting scammers of all kinds.

Wait till hackerfeiters start minting, their own Linden$s.

Can you say straw man? It's not a matter of wanting the Linden dollar to be more than play money and nothing I have posted in this thread implies that.

The Linden dollar IS more than play money. You can't exchange play money for US dollars. It's not "money" i.e. currency at all as I have pointed out over and over again to you, but it clearly has value.

Oh and by the way if third parties can hack the Second Life servers and create Linden dollars there will be a lot more things to worry about than the exchange of Linden dollars and US dollars in Second Life.