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(source: latimes.com)

According to this LA Times piece, Facebook is considering launching their own virtual currency.  I don’t think there is any doubt the pros of this product outweigh the cons. Chinese social networks, such as 51.com and Xiaonei, have already proven this to be a viable business model, albeit in China.

The social media world has continued to wonder what Facebook’s long-term revenue strategy will be. Will they ever be able to generate enough revenue to live up to the lofty valuations some have placed on them? Building a virtual economy could be the first step to actually reaching the revenue potential Facebook is capable of.

Whether or not Facebook actually completes this project is another debate. Facebook already abandoned their plans for a microtransaction system. Could this just be another undertaking that follows in those footsteps? It is possible, however, that Facebook abandoned the microtransaction system because they felt virtual currency is a more viable business model. I am leaning towards the latter.