Legal Definitions - Internet scrip

Internet scrip refers to a form of digital or electronic credit, currency, or token that is issued by a private company or online platform, rather than by a government or central bank. Unlike official legal tender, internet scrip typically has a limited scope of use, often being redeemable only for specific goods, services, or experiences within the issuer's own digital ecosystem or a defined network of partners. Its value is determined by the issuing entity or by market demand within its specific context, and it is not universally accepted as payment.

Here are some examples to illustrate the concept of Internet scrip:

• Example 1: In-Game Currency on a Gaming Platform

  Imagine a popular online video game where players can earn or purchase "Gemstones" to unlock special character outfits, unique weapons, or access exclusive levels within that specific game. These "Gemstones" cannot be used to buy groceries at a supermarket, pay rent, or purchase items on a different gaming platform. They are created and controlled by the game developer and are only valuable within the confines of that particular game's universe.

  This illustrates Internet scrip because the "Gemstones" are a digital currency issued by a private entity (the game developer), their use is restricted to specific goods and services within that game's ecosystem, and they are not recognized as legal tender outside of it.

• Example 2: Virtual Tokens for Content Creators

  Consider a social media platform where users can buy "Creator Coins" with real money to send as tips or rewards to their favorite content creators. These "Creator Coins" can then be redeemed by the creators for a portion of their real-world monetary value, or used to purchase promotional features on the platform itself. However, these coins cannot be used to buy products from an online retailer or pay for a subscription service unrelated to the platform.

  This illustrates Internet scrip because "Creator Coins" are digital tokens issued by a private platform, their primary function is to facilitate transactions and rewards within that platform's community, and their utility is limited to that specific digital environment.

• Example 3: Digital Loyalty Points for Online Services

  A major airline offers a digital loyalty program where frequent flyers accumulate "SkyMiles" for every flight taken or through purchases with partner credit cards. These "SkyMiles" can then be redeemed for future flights, upgrades, or specific travel packages offered by the airline and its direct partners. They cannot be converted into cash at a bank, used to buy a car, or spent at a restaurant that isn't part of the airline's specific redemption network.

  This illustrates Internet scrip because "SkyMiles" are a form of digital credit issued by a private company (the airline), their value is tied to the services offered by that company and its partners, and their use is restricted to a defined set of redemptions within that specific loyalty ecosystem.