Microsoft finally replaces Microsoft Points with local currency
The long awaited switch from Microsoft Points to real-world currency finally took place yesterday. As a result, your current existing balance or newly-entered Points should have (or will) automatically convert to your local currency.
The Xbox LIVE Marketplace now lists all prices in local currency instead of Points. Microsoft notes on its official site that all Points converted to currency will be valid until June 1, 2015; however, “the currency you purchase and add to your account after the transition will not expire”). If you still have Microsoft Points Cards, Microsoft encourages that you redeem them without worry as they will be converted to an ammount of local currency equal or greater than the Marketplace value of those points.
For a full rundown on the switch, check out Microsoft's FAQ page.