subscribe: Daily Newsletter


Virtual banks fall victim to economic woes


Even the banks in the virtual world Second Life have fallen victim to the global economic crisis, with the game's creator now intervening to prevent a financial meltdown after one virtual bank collapsed. 

Linden Labs is introducing regulations that prevent the payment of ludicrous interest rates in an attempt to stabilise the economy of Second Life – but its moves may have backfired as virtual users have initiated a run on banks to recover their money while they still can.
Although the money in Second Life is also virtual it can be exchanged for real money – and many users have got their eye on the real-worl profits they can make from selling their virtual money. There have been reports of gamers cashing in their Second Life dollars to become real-world millionaires.
Next week (22 January), new regulations will prevent Second Life banks from offering interest or any other return on investment without a government registration certificate of financial institution charter.