( CNN ) -- While China is seriously cracking down on the exchange of virtual currencies for real cash , virtual economies backed by newfound legitimacy elsewhere are quickly gaining ground in the real world . There 's gold in them there screens : Real-money transactions in virtual worlds are finding new legitimacy . On June 24 , 2009 , the role-playing game 140 Mafia launched on Twitter , following in the footsteps of highly lucrative games Mob Wars and Mafia Wars on Facebook ( and now iPhone ) to link virtual-currency exchanges to real-money transactions . In March 2009 , MindArk -- creator of the MMORPG ( massively multiplayer online role-playing game ) Entropia , where one player famously bought an island for US $ 26,500 in 2004 -- saw its wholly owned subsidiary Mind Bank granted a banking license from the Swedish Financial Supervisory Authority . The new license allows Mind Bank to be the first bank to directly incorporate real-money transactions with virtual-world activities . Selling virtual assets directly between players for real-world cash has been strictly prohibited by most game publishers , which find themselves looped out of the profits . What has been profitable in the meantime to some hardcore players of World of Warcraft and EverQuest ( and other games ) is `` gold farming '' -- accumulation of `` gold , '' weapons and other status symbols of a seasoned player -- followed by the online auction of such assets or user accounts . Since games publishers began policing eBay for this type of unauthorized activity , several Web sites such as PlayerAuctions have adopted a PayPal-like approach in order to broker the trading legally , acting as an open marketplace for player-to-player exchange of digital assets . Dual-currency economies . However younger games ( often aimed at younger audiences ) are ditching the conventional subscription-based model of the above games to adopt the `` freemium '' model , which lets users play for free , but allows them to enhance their experience by purchasing accessories or other premiums through micropayments . Frenzoo , a `` 3D fashion game for girls '' , is one game that has adopted this model . CEO Simon Newstead explains : `` The idea with dual currencies is that there is a paid currency [ Gold Coins ] , which is paid for using real money and exchanged between sellers and buyers . In addition , there is a second currency -- a free or so-called 'earned ' currency [ Silver Coins ] -- which is gained through activity and progression in the world or game . '' `` In this way , '' he continues , `` the economy can recognize different forms of contribution , and in newer economies these can also be traded between each other . For example , people earning currency and selling it to people who have less time but have real money . '' Mirrored economies . As one of the first successful virtual economies , Second Life 's huge marketplace includes objects and services for sale , as well as a real estate market . In 2008 , more than $ 100 million worth of the world 's Linden dollars were bought and sold on Second Life 's official LindeX exchange , according to its Web site . `` In Linden Exchange , the U.S. dollar part of the transaction is via PayPal , a well-known entity , so there 's a certain amount of trust that comes with it , '' says Darrly Chang , co-founder of D & D Dogs , a two-man freelance venture that sells virtual dog pets and avatars to Second Life residents . Recently , however , business has slumped along with the real-world recession . `` We 'll continue to see a proliferation of alternative currencies associated with specific platforms and communities , much as frequent-flier miles are associated with individual airlines or even networks of airlines , '' says Dan Jansen , CEO of Virtual Greats , which specializes in creating branded , copyrighted material for virtual worlds . `` In the longer term we may see a global standard for virtual currencies , but it will take some time . '' Golden e-currency ? James Turk , chairman of digital-gold company GoldMoney , agrees . `` But , '' he adds , `` inevitably digital gold currency will make significant inroads in global commerce because it lowers the cost of transacting with one another . Reducing transaction costs creates more opportunities for global commerce . '' In March 2009 , GoldMoney launched a dedicated iPhone application allowing its account holders to exchange gold and silver units within minutes . Putting a trendy iPhone application that allows people to manage their own digital gold on par with other popular banking applications branded by well-established banks brings e-currency a step closer to the modern mobile end-user . Furthermore , GoldMoney is firmly anchored to real-world assets and individuals , notably strictly forbidding anonymous accounts -- unlike the former incarnation of the pioneering company E-Gold , whose founder this month ends his six-month house arrest in Florida after pleading guilty to money laundering-related crimes . So how realistic is the prospect of a single , global , digital currency ? `` It all comes down to trust , '' says senior economist Frederic Neumann . `` We trust the government to guarantee our 'virtual ' money for real currency . [ With digital gold ] the gold standard is guaranteed by a private company . Governments already have several hundred years of sovereignty engrained in people 's minds , so that trust is very difficult to establish . ''
Entropia Universe 's Mind Bank has been granted a real-money banking license . Dual-currency economy allows for free trading between virtual and real money . Second Life can be profitable , but also suffers from real-world recession . Digital gold currency may be promising , but still lacks trust of people .