VIRUTAL CURRIENCIES: THE CHALLENGE TO GLOBAL FIAT PARADIGMS Colabella, Patrick St. John's University

According the GAO, “A virtual economy is comprised by the economic activities among a community of entities that interact within a virtual setting but there are no legal definitions for a virtual economy or currency”. A virtual currency is unit of measurement that is an intangible digital unit of exchange similarly not backed by any government-issued physical legal tender. A virtual currency then can be used entirely within this virtual economy, or it can be used in lieu of a government-issued currency to purchase goods and services in the real economy. It is this ability now present in the hands of the global general public operating the Internet that can redefine the traditional world economy as we know it. It is this realization that generates an examination of the paradigm currency and Challenges that can prevail in its demiseThis paper examines the potential impact of virtual currencies and offers a means by which a global synergy is attainable if governments can harness values created from virtual economy for the purpose of serving the social good.