Virtual currency is a digital representation of value, not issued by a central bank, credit institution or e-money institution, which, in some circumstances, can be used as an alternative to money.
Virtual currencies are often those that aren’t legal currencies. It’s a type of unregulated, digital money, which is issued and usually controlled by its developers. And used and accepted among the members of a specific virtual community. Like for credits in games or relating to some of the things like buying other types of IAP (in-app-purchases), or in-game items.
A virtual currency is a subset of digital currency that has no physical part and that can be used within a defined space. Like the internet, lots of online games have the concept of a virtual currency that can be earned and spent based on your participation in their online universe.
Therefore virtual currency typically refers to online only currencies that doesn’t live outside the internet and can only be exchanged on the internet. Virtual doesn’t exist, except by notion. It shouldn’t really exist.
When you think of some of those virtual goods that you can only purchase through virtual currency these may include: To get costumes in games, zombies, flying pigs and shiny pixelated swords, and so forth.
Virtual currency grew from gaming systems and still largely exists in that world, whereas you can’t necessarily use virtual currencies to fill up a tank of petrol, or get things from the grocery store.
