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World's First Virtual Banking Licenses
An anonymous reader writes to mention a new, unique situation in Massively Multiplayer games. The Entropia Universe title has broken new ground by being granted five virtual banking licenses. These are exactly what you think they are: in-game bankers can transfer Entropia funds directly to your real-world bank account as real world cash. The well-known conversion rate between EU cash and real money allows this; more entertainingly, you can withdraw RL cash into EU notes via the banks as well. From the article: "These two-year exclusive licenses will be available through the public auction within Entropia Universe and will be open for bids beginning mid January 2007. Entropia Universe is the only virtual universe on the internet whose currency has a fixed exchange rate with the US Dollar. Its currency can easily be moved between Entropia Universe and the real world using an ATM card. The Entropia ATM card can be used to instantly withdraw real cash from over 1 million ATM machines worldwide"
a Quick note.
Project Entropia Dolars (PEDs) is the currency in Entropia Universe (Previously reffered to as Project Entropia), not EU notes.
Just to make sure that people don't think that money from the EU isn't real, despite what most of us americans seem to think, they are trouncing us in value currently.
Do Or Do Not, There Is No Spoon, There Is Only Zuul. Everything in the above post is probably opinion.
These are exactly what you think they are: in-game bankers can transfer Entropia funds directly to your real-world bank account as real world cash.
So essentially, the Entropia "world" has been given the right to manage a fiduciary mass. A virtual world and a virtual fiduciary system, but a real one nonetheless because it has currency rate with real greenbacks.
Consider the definition of a state: statehood for an entity as having:
- a territory: Entropia is virtual real-estate, but it's not so far-fetched to say it's a real territory, since people use its virtual space
- a population: Entropia has gamers
- a government: the game maker I suppose
- the ability to mint money: well, it has a currency now, backed by a currency rate recognized by another state
- the ability to print its own stamps: that would be easy to implement, with an in-game certified email system separate from regular email
- the capacity to have relationships with other, recognized states: it does de-facto, since an already recognized state recognized its currency
So, I think in international law, Entropia could claim statehood. Their position would be even less shaky than, for example, Sealand. This is a very exciting and new development indeed.
"A door is what a dog is perpetually on the wrong side of" - Ogden Nash
The well-known conversion rate between EU cash and real money allows this
For those interested, the EU-to-real-money conversion rate is 1.00 EU = 1.29972 USD according to xe.com.
Not sure how this is news, though. I have been converting between US dollars and Euros for years.
Its only a matter of time till outfits start attempting to launder money thru virutual economies.
Can't say much about the game, but how do they -peg- RL currency to the entropia currency? If the US dollar goes up 10% does that mean that the developers all of a sudden are 10% less profitable? Or, is there a system in the game to handle currency volitility? Can one simply hold entropia dollars then sell them off when the dollar is high? Is there a transaction penalty? Ah, too many questions, too little time.
Bye!
Let's just say that I won't be investing my life savings into some MMORPG anytime soon. Unless the universe is STRICTLY limited so that actual cash dollars MUST come in (either through monthly fees or deposits) before money is created (including money "created" by NPC's), this will likely crash 'n burn.
The entirely expected, and disturbing part of the "Cash Card" user agreement is as follows:
"MindArk may, at MindArk's sole discretion refuse a request for authorization of any Entropia Universe Cash Card transaction or may deactivate the Entropia Universe Cash Card without notice and may notify third parties of such refusal or deactivation as MindArk determines is necessary." The Cash Card is one of the ways you get money out of the system (via ATM's), so if it gets deactivated, that hurts. While I wasn't able to find any information on it, I suspect the direct bank-transfer system has a similar caveat.
This whole setup reminds me of "Stock Generation", an online Ponzi scheme set up as a "game" several years ago. Google can probably dig up details.
SirWired
As part of this declaration, a proclamation was issued by Entropia's in-game elected governing body, declaring a mandatory 10 year maximum for Copyright, and very liberal "Fair Use" rights.
The RIAA and MPAA immediately filed for a DMCA take-down notice against Entropia's ISP.
Entropia in-game governing body could not be reached for comment.
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