The London-based SAGA blockchain firm announced the launch of the new SAGA token (SGA) which will be very similar to Facebook’s Libra. The digital unit shows that the global currency is compliant with the regulators’ requirements as we find out more in today’s blockchain news.
The cryptocurrency is backed by the basket of fiat currency to avoid the high volatility and it acts as a stablecoin that resembles Libra- Facebook’s digital currency that is still under development. Interestingly enough, the advisory board has members such as Myron Scholes who is the Nobel-prize winner, the former Governor of the Bank of Israel and current chairman of JPMorgan Chase Jacob Frenkel as well as Dan Galai who is the pioneer of the VIX volatility index. The blockchain firm was founded by Ido Sadeh Man and is not led by him as well. He explained in an interview:
‘’Unlike other players, we don’t want to be the issuer and the payments layer and the custodian. We’re focusing on the monetary part of it, on the issuance of a sound currency for global use, and we will increasingly liaise with partnerships in the realms of custodianship and of payments.’’
Facebook offers the same idea but it faced a lot of backlash from governments and regulators around the world. However, the SAGA blockchain firm does not want to create a whole new asset basked but it is pegged its token to bank deposits in the same fiat currency group that form the so-called special drawing rights which are an instrument created by the international monetary fund. Another major difference is that Saga will not make a profit from the token as it acts only as an issuer. It does not create its own wallets such as Facebook and Calibra. The users will be able to purchase the SGA on Saga’s site through the Liquid exchange.
Sadeh Man explained that the token will act as a complementary currency for cross-border payments so the users could even use it to pay on Amazon in the case fiat money becomes too volatile. Saga explained that they will collaborate with the regulators and the banks since they consider the token as a bridge between fiat and digital currencies. Man commented:
‘’Currencies have not kept up with the pace of globalization and they do not address the global scope and needs of modern lives. The decreasing economic importance of national boundaries, changes in society, and a need for monetary diversification have created a necessity for a complimentary, global, non-governmental currency. We have set out to address this need by launching the first stabilized, digital currency governed by its holders and compliant with AML regulations.’’
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