Second Life

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with in-world protests.

In August 2007, a 0,000 in-world bank called Ginko Financial collapsed due to a bank run triggered by Linden Lab’s ban on gambling, which halved the size of the Second Life economy. The aftershocks of this collapse caused severe liquidity problems for other virtual “banks”, which critics had long asserted were scams. On Tuesday, January 8, 2008 Linden Lab announced the upcoming prohibition of payment of fixed interest on cash deposits in unregulated banking activities in-world. All banks without real-world charters closed or converted to virtual joint stock companies on January 22, 2008. After the ban, a few companies continue to offer non-interest bearing deposit accounts to residents, such as the e-commerce site XStreet, which had already adopted a zero-interest policy 3 months before the LL interest ban.

Technical

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