Abstract

Money as a generally accepted media of payment has been running through various evolutionary stages, the latest being virtual money. Virtual money is a money-like electronic payment system for business transactions on the Web. Different companies supply different virtual monies. If we regard the Internet as a new, relatively separate nation, and a nation usually has just one currency, the main question is whether virtual money should be supplied by monopoly or through competition? This article shows that on one hand competition provides special advantages but on the other hand the monopolistic supply of money offers advantages as well. The same is true for disadvantages. It is shown that competition is no guarantee for an optimal solution, but the opportunity of choice and flexibility as offered in competitive systems provides a better base for a prospering (virtual) monetary system than any monopoly-like situation.

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