Zcash, a new rival to the bitcoin, was created by technology entrepreneurs and scientists from universities in the US and Israel.

A new rival to the virtual currency bitcoin, which claims to offer users complete anonymity, is being touted as the future of online currencies.

Zcash, pronounced zee-cash, was created by a group of technology entrepreneurs and scientists from universities in the US and Israel. The currency’s founders were briefly paper billionaires following its launch last week, with the price per unit nudging above $5,200 (£4,080).

Its value has fallen back and it was yesterday trading at about £520 a unit, below the price of bitcoins (£550), with traders divided on whether Zcash is a game-changer, or hyped and due to fall further.

The currency is modelled on bitcoins, which were introduced almost eight years ago and allow users to make transactions without the involvement of