Linden Lab, the owner of the popular virtual world, had taken a hands-off approach to the virtual banks, saying they were not responsible for actual transactions, just the software. However, they eventually shut down all the banks that were unable to prove a government registration statement or financial institution charter. Apparently none could.
Implications - With the economic recession still hanging over many consumers' minds, money issues are at the forefront of purchasing mentality. Companies should consider more economical, low-cost designs that will appeal to the broad consumer base still anxious to spend any money at all.