"sources familiar with Microsoft's Xbox plans", the fake Microsoft Points currency that's had its fair share of controversy will be ending. Instead they'll favour a "new gift card system" in its place.
However Xbox 360 is unlikely to change its ways beyond Microsoft Points, potentially creating some price discrepancies. This new 'gift card' will work beyond just Xbox.
The new handling of real-world currency will be likely shown at either the Next Xbox event due the end of May or at E3 in June. It'll be similar to Apple's iTunes vouchers.
Microsoft Points have long been a contentious point for Xbox gamers because of being forced to pay for them in blocks, which don't directly reflect the cost of all purchases through the Xbox Live Marketplace. Currency exchange rates would also affect how much of a price difference regions experienced.
Local currency FTW! - providing it's fairly priced.