So is it possible for you guys to add a coin mixer on mycelium. I know that the coins would have to be held on a central server so that they can be mixed but can this be possible without the server?
There is something called CoinJoin, which is basically a mixer that doesn't rely on a central server. Everyone creates a single transaction putting their money and taking it out at the same time, then passes that transaction around, and signs it with their own keys once they verify that each person will get their own money back. Once everyone checks that they're not getting robbed and signs the transaction, the transaction is broadcast, and everyone's coins get mixed all at once. No need for servers (other than to help potential mixees find each other), and no need to trust anyone. That's basically what DarkWallet implements for anonymity. But in order to do that, you need to be able to send change, or in this case output from your coins, to a new address, which means you need BIP32 HD Wallets. That's what Mycelium is working on implementing in their wallet right now. Once HD wallets are done, they should be able to get CoinJoin in as well, and then you'll have mixing right in your android wallet.
Forgot there was something like coinjoin but anyway cant wait for this feature to be added and due to the high number of people using mycelium the mixing might be very effective(0% taint)
Thanks rassah.