eBay likely to launch own virtual currency

Online commerce site eBay's PayPal has reportedly filed a patent application that hints to a possible launch of its own virtual currency.

The patent application proposes secure tokens that would let people buy products without creating a payment provider account.

According to Mashable, the patent filing states that the recipient can use the token to purchase a product using a checkout though the payment provider, but won't require creating the user's own payment provider account.

The application states that the tokens would be for giving gifts, but in theory, they could serve as a currency that can be used for purchases outside of eBay and PayPal and would be a competitor to Bitcoin, dogecoin and litecoin, among others.

PayPal president David Marcus said that he doesn't think the proposed token would be used as a currency yet because its pricing fluctuates too much for practical use.