Creation and Consumption Book 3: Wildcat Currency

Chapter 3: Is It Legal?

In this chapter, the author, Mr.¬†Castronova, states that the constitution never says that someone outside of the government could not coin their own mint. There were several actions taken by the government and the supreme court that restricted the use of private money, and eventually drove a lot of the private money out of the economy. For example, several actions taken were: to forbid anyone from making anything metal or any metal compounds for the intended use as currency. There was also legislation passed to not allow currency less than a dollar to be made. The third example of legislation passed to decrease private currency would be to make the counterfeiting of currency illegal. An new¬†point brought up by the author is that physical currency, such as casino chips are highly regulated, virtual currency is not. Currently, there are not any laws specifically prohibiting virtual currency. Therefore, someone’s amazon reward points, or World of Warcraft coins are their own. At some point we can be sure that the government will step in and have a say about the legality of virtual currency, but that day has not come yet.

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