The measurement speed and measurement accuracy of a displacement measuring interferometer are key parameters. To verify these parameters, a fast and high-accuracy motion is required. However, the displacement induced by a mechanical actuator generates disadvantageous features, such as slow motion, hysteresis, distortion, and vibration. This paper proposes a new method for a nonmechanical high-speed motion using an electro-optic modulator (EOM). The method is based on the principle that all displacement measuring interferometers measure the phase change to calculate the displacement. This means that the EOM can be used to accurately generate phase change rather than a mechanical actuator. The proposed method is then validated by placing the EOM into an arm of a frequency modulation interferometer. By using two lock-in amplifiers, the phase change in an EOM and, hence, the corresponding virtual displacement could be measured by the interferometer. The measurement showed that the system could achieve a displacement at 20 kHz, a speed of 6.08 mm/s, and a displacement noise level < 100 pm//√Hz above 2 kHz. The proposed virtual displacement can be applied to determine both the measurement speed and accuracy of displacement measuring interferometers, such as homodyne interferometers, heterodyne interferometers, and frequency modulated interferometers.