5 Industries Using Digital Currencies

Over the centuries, currency and the ways that we use it have changed. From traditional paper and coins, the digital age has ushered in a new form of currency; virtual ones. Based mainly online, these digital forms of money have found a home in the corporate world where they are used for all sorts of things.

While it is easy to dismiss virtual currency as not being ‘real’, the value they offer corporations and consumers cannot be any more real. And from all indications, they are only going to be used more with the rise of eCommerce and online transactions. Here are some of the industries embracing digital currencies.

1. Social Media

Social media sites have become a very important part of our modern world. Not only are they a digital meeting point where we share ideas and opinions but they are also, for all intents and purposes, a virtual economy. The engagement that takes place on social media platforms is monetizable and valuable, which is why many brands pay for it.

And several social media sites have created in-house virtual currencies to facilitate this engagement, reward users, and so on. A good example of this is Reddit with its ‘karma’ points and its Reddit Gold system. Karma is a system in which users earn points for creating posts and comments and engaging with others. Reddit Gold, Silver, and other awards are purchased by Reddit users and given to posts that they feel are especially deserving.

By creating this digital currency, Reddit enjoys a revenue stream via payments for the awards but also gets to foster and quantify community participation. This also shows the ways that social media sites can manage their native economies through virtual currencies.

2. Gambling

The 21st century has seen the age-old act of gambling get a bit of an upgrade. Part of this upgrade includes online gambling sites using virtual currencies. Usually, you would need to deposit fiat currency to a betting site and use that to play your games or place bets. But many are now embracing innovation, especially social and sweepstakes casinos.

Each casino will typically have its own virtual currency and this not only makes gameplay more enjoyable but also helps the site connect more with its customers. Many, including some reviewed by Techopedia, give welcome bonuses to new members and donate some proceeds to charity.

And given how popular sweepstakes and social casinos are becoming, we’re going to see this become more of the norm moving forward, especially as gambling restrictions tighten in some countries.

3. Gaming

Anyone who is involved in gaming will tell you that the industry has thrived on in-game virtual currencies for decades. It is almost a given that there will be coins, gems, or some other form of currency that players can earn as they go or pay for. These in-game currencies are closely intertwined with gaming universes that players sometimes need to collect a certain amount of them to even access exclusive levels, features, and experiences.

These currencies are also used by gamers to interact with themselves. Official and unofficial gaming marketplaces are full of players trading virtual tokens for skins, tools, and much more. All things considered, the gaming industry has fully utilized virtual currencies and will likely continue to do so.

4. Consumer Goods

One major hallmark of modern consumer brands is an emphasis on customer loyalty programs and these programs thrive partially because of their virtual currencies. From Taco Bell Rewards to Walmart Rewards, every major brand seems to have its own version of a virtual currency that customers are encouraged to pursue.

The idea is usually that customers earn virtual currencies for each purchase made with the brand. As these currencies accumulate, they can be used to redeem rewards in the material or virtual world. Needless to say, the consumer goods sector has been one of the biggest users of digital currencies. In fact, it is more noteworthy for a consumer brand to not have a virtual currency-based reward system than the other way around.

5. The Metaverse

The metaverse is one of the biggest emerging industries in 2023. It is so big, in fact, that Facebook changed its parent company name to Meta in pursuit of more metaverse endeavours. The metaverse, which refers to virtual universes that users can interact with, also heavily leaves virtual currencies. From metaverse games like Second Life to giants like Decentaland, most metaverses have some digital economy that relies on virtual currencies to buy and sell among players.

And as the metaverse industry is on track to be worth over $80 billion in 2023, virtual currencies will continue to have a home there.

As we can see, industries of all types are tapping into the benefits of digital currencies and as time goes on, we can only expect this number to grow.