3pointD.com

Tony Walsh flags a couple of interesting stories from the world of virtual finance today. The virtual world of Entropia Universe is apparently auctioning off five virtual banking licenses, each with a two-year term, for vendors who will provide real-world banking services to players of the game. Meanwhile, over in Second Life, Kyle Polulak’s Crystal Studio (here’s their blog) is already experimenting with automated teller machines that would allow you to deposit L$ to a real-life bank account, with the transactions presumably being reflected in real-world denominations, according to an SLNN article. (Polulak, aka SL resident Fox Diller, is based in Canada.)

According to Polulak, “cooperation already exists between CS and at least two international banks, one of them based in Canada,” and his ATMs are already in alpha testing. Crystal Studio also has a Canadian tax expert on staff to handle legal issues. If the project flies and can pass legal muster, it could be an interesting circumvention of Linden Lab’s internal currency exchange, the LindeX.

The banking services Entropia envisions go even further, and could be subject to thornier regulatory issues. Their press release describes the banks as being virtual brick-and-mortar locations within the world that will offer interest-based loans to Entropia residents — which immediately puts you into complicated territory based on the need to keep money in reserve to cover lending. This is not the first time Entropia’s economy has reached into the real world, however. Last May, Entropia announced that it had struck agreements to allow users to withdraw their PED currency (valued at ten to the US dollar) in real-world denominations from real-world ATMs. According to the press release, that program has only grown since then: ‘”The Entropia ATM card can be used to instantly withdraw real cash from over 1 million ATM machines worldwide.”

The press release doesn’t mention how to get involved in the auctions for the banking licenses, other than the fact that they’ll be offered at “public auction within Entropia Universe.” So all you virtual J.P. Morgans out there can sign up for your Entropia accounts now.