What is virtual currency? The CEO of IMVU explains

Virtual currency has already found a home for itself in gaming and social applications, but innovations in payment tools could soon expand its reach.

That's why I sat down with Cary Rosenzweig at Web 2.0 Expo. As CEO of IMVU, he's been dealing with virtual currency for years. I asked him about the current state of virtual currency and his predictions for its near-term growth

Key points from Rosenzweig:

• Virtual currency is similar to airline miles:."They're symbolic currencies you can accumulate and then switch them into something you care about," Rosenzweig said.


• IMVU's currency is entwined with its community marketplace. Rosenzweig said that over the last 30 days on IMVU, more than 30,000 people sold at least one virtual good to another member.


• A virtual-based economy needs balance, and that requires monitoring. IMVU keeps an eye on inflation and deflation pressures.