They are not exchangeable to fiat. Buying/Selling miles for fiat is stictly prohibited by all airelines TOS.
But buying and selling for BTC isn't? 
Topic: Airline Reward Points - page 2. (Read 3791 times)
They are not exchangeable to fiat. Buying/Selling miles for fiat is stictly prohibited by all airelines TOS.
Why aren't airline reward points considered a centrally issued virtual currency?
FinCEN States:
It seems to me airline rewards have an equivalent value in real currency and clearly act as a substitute for real currency.
FinCEN States:
Quote
In contrast to real currency, "virtual" currency is a medium of exchange that operates like a currency in some environments, but does not have all the attributes of real currency. In particular, virtual currency does not have legal tender status in any jurisdiction. This guidance addresses "convertible" virtual currency. This type of virtual currency either has an equivalent value in real currency, or acts as a substitute for real currency.
It seems to me airline rewards have an equivalent value in real currency and clearly act as a substitute for real currency.
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