A report that United States President Joe Biden will soon sign an executive order regulating cryptocurrencies sparked a surge in prices for privacy coins, Monero and Zcash this morning.
The privacy coin surge was not clearly linked to Russian sanctions or if this was the reason behind it. Regardless, the surge was a result of something, moving from US$169 to US$204, up 29.2% in an hour and a half.
In addition to its highest level since January 20, Zcash was up 26.3 percent at $139.
There were fewer privacy coins with a smaller size. Dash gained 11% to $95. The Pirate Chain price rose 7.4% to $1.11.
What you should know
- Privacy-focused crypto coins obfuscate information about their users, such as their identities and transaction histories.
- The US president has ordered a “sweeping review” of crypto, looking at how it presents opportunities for illicit transactions and what steps should be taken to eliminate them.
- Also included in the executive order will be a discussion about a central bank digital currency, a directive to the Treasury to investigate possible financial stability threats, a directive to investigate the energy consumption associated with crypto mining, and a directive to the State Department on how the US should coordinate with its allies.
- Monero is unique for several reasons. This project strives for maximum decentralization, which means users can use the network without having to trust anyone else.
- There are several distinctive features that contribute to privacy. XMR is completely fungible, unlike Bitcoin, which has a unique serial number which makes it possible to monitor its usage.
- Monero advocates say the default feature obscures senders, recipients, and the amount of crypto being transferred – and that provides an advantage over rival privacy coins such as Zcash, which are “selectively transparent.”