Backed by a Nobel laureate, blockchain company SAGA issues a global stablecoin similar to Libra

The London-based blockchain company Saga has announced the launch of its Saga (SGA) token, issued in the form of a stablecoin and compliant with regulatory requirements as a global currency.

Strong Committee Lineup

The currency is backed by a basket of fiat currencies to avoid high volatility, similar to stablecoins like Facebook's still-in-development Libra project.

The advisory committee for the project includes members such as Nobel laureate Myron Scholes, former Governor of the Bank of Israel and current Chairman of JPMorgan Jacob Frenkel, and VIX volatility index pioneer Dan Galai, among other top economists.

CEO Ido Sadeh Man emphasized in an interview:

Unlike other projects, we don't want to be the issuer, payment, and custodial entity. We'll focus on the currency part, concentrating on providing a currency issuance that can be used globally.

Facebook's Libra project has proposed a similar concept but is facing unprecedented opposition from governments and regulatory bodies worldwide. Saga, on the other hand, does not aim to create a new basket of assets. Instead, it ties its tokens to bank fiat deposits, similar to the International Monetary Fund's creation of "Special Drawing Rights."

Another distinction from Libra is that Saga only acts as the issuer and does not profit from the tokens. Users will be able to purchase SGA tokens on Saga's website and through the Liquid exchange.

Collaboration with Banks and Regulatory Bodies

The founder pointed out that the token serves as a complementary currency for cross-border payments. For example, in times of excessive volatility such as with the British Pound due to Brexit, UK citizens may opt to pay on Amazon using SGA tokens.

Saga also stated in its announcement that it will collaborate with regulatory bodies and banks. The token will act as a bridge between fiat and digital currencies, claiming SGA to be the first simulated central bank digital currency issued under a national currency mechanism but usable globally. Founder Sadeh Man commented:

Fiat has not kept pace with globalization or addressed the global scope and demands of modern life. With the diminishing economic importance of national borders, societal changes, and the need for currency diversification, the necessity for a "global non-governmental currency" arises. We have set out to address this need by launching a stablecoin that meets the demand, managed by the holders themselves.

A report indicates that SGA tokens are not anonymous, requiring token holders to undergo KYC verification procedures to ensure compliance with anti-money laundering (AML) policies.

Who Controls SGA?

While Libra is building a consortium of financial giants to manage its stablecoin, Saga presents a more democratic approach. The token network will be overseen by holders. Sadeh Man emphasized:

Holders are the sovereigns of the currency, able to vote at company board meetings and influence its currency policy.

Although Saga strives to maintain its compliance, the token will not be issued in the United States for the time being. CEO Sadeh Main stated that the US is currently "an area we don't want to enter." We only hope to expand operations in regions where regulations are clearly adhered to.

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