It might be a second life, but our first life is causing it problems. Real world banks seem to be offering their own forms of monetary policy in the virtual world, and are then defaulting upon it. This along with unrealistic interest return rates is destabilizing the Second Life's economy. The Fed, I mean, Linden Lab to the rescue! Demanding any and all Second Life banks get government approval before conducting operations.
Not to start a panic, but if I were finding my bank was 'unregulated' to a near useless state. I'd demand my money out of there. The bank, having thousands of customers all do this at once is what happened in the great depression. Too many withdrawals, not enough money and the market crashes.
To make matters worse, the regulations are expected to start in less then a week, on the 21st. Making getting any sort of accreditation in such little time laughable.
Some banks have already folded, popular bank Ginko Financial folded with Second Life's recent ban on gambling. They responded by holding accounts and transferring from a bank, to a bond like fund for its customers traded on the world exchange.
With Linden Labs being firm to not 'bail' any these banks out, it shall be interesting to see what the fall out shall be, or if a free market alternative with some regulation arises.
It is an interesting case, showing what happens when MMO's start hitting the real world.
https://ginkofinancial.com/
http://business.theage.com
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