According to the WSJ, the QQ coin, a currency that is the most widely-accepted for virtual purchases in China, is starting to beat out cold hard yuans in the money marketplace:

At informal online currency marketplaces, thousands of users helped turn the QQ coins back into cash by selling them at a discount that varies based on the laws of supply and demand. Traders began jumping into the QQ coin market as an opportunity to make a quick yuan off of currency speculation.

State-run media reported that some online shoppers began using QQ coins to buy real-world items such as CDs and makeup. So-called QQ Girls started accepting the coins as payment for intimate private chats online. Gamblers caught wind, too, and started using the currency to get around China's anti-gambling laws, converting wins in online mahjong and card games back into cash. Dozens of third-party trading posts sprouted up to ease transactions, turning the QQ coin into a kind of parallel currency.

Tencent Holding Ltd, the designers of the QQ coin, are trying to clean up the mess as quickly as they can because out of all the governments in the world, China is probably the one you don't want mad at you.Kim Phu

QQ: China's New Coin of the Realm? [WSJ]

Contact information for this author is not available.