| 18 February 2010
The development of virtual money is a dynamic process from junior to senior, with issuance mechanism and money function evolving gradually. In this article, virtual money is divided into 5 modes: original, primary, ameliorative, intermediate and advanced. The primary and ameliorate virtual money do not have the full four money functions, is not true sense of money. However, the intermediate and advanced virtual money have the full spectrum of characteristics of moneyness, can be treated as the real money. The impetus of evolution comes from the increase of in-game virtual goods trade, the facilitation prompted by information technology progress and internet development, the needs from users, and the choice from issuers who seek to maximize profit. The paper proposed that virtual money evolving from primary to advanced mode will attract more players into the online games and prompt the frog leap of the game subscription, which will bring more profit for the game operators. From a survey, it is found that all the virtual money in china is in primary (ameliorative) mode, but the demand for intermediate mode virtual money is strengthening, and the emergence of advanced mode should experience a long but promising process. Different regulatory measures on virtual money should be taken corresponding to the different modes.