The Saga Foundation this week announced its mission to create Saga (SGA), the first non-anonymous blockchain-based digital currency.
The currency is designed with a tamed volatility mechanism. These characteristics can set the ground for the currency to become a store of value and a medium of exchange.
Saga is designed to address legitimate concerns expressed by policy makers, regulators and market participants regarding cryptocurrencies; mainly their anonymity, lack of underlying value and high volatility. Its holders must satisfy full KYC qualification and AML requirements under Swiss law. With such disclosures, Saga resolves concerns about participant accountability, an issue often raised regarding cryptographic currencies.
Saga aims to promote a low-volatility environment, combining the virtues of blockchain technologies with algorithmic representations of financial tools. For this reason, Saga is backed by a variable fractional reserve anchored to the IMF’s SDR. These reserves will be deposited with regulated banks through algorithms in the underlying smart contract system.
“While Blockchain technologies have gained growing acceptance, encryptic currencies have raised public policy concerns, since they are anonymous, unbacked, and are highly volatile,” JPMorgan Chase International chairman Dr. Jacob Frenkel said (Dr. Frenkel is a senior advisor to Saga). “I share these concerns and see great value in Saga’s vision to address them properly.”
“Blockchain technologies will change financial infrastructure, from a current focus on transactions processing to transactions analyzing,” advisor Prof. Myron Scholes added. “This facilitates more efficient client solutions to their financial problems. The Saga project aims to develop a sustainable and efficient blockchain-based cryptocurrency that I support through becoming a member of its advisory council.”
“The creation of Saga is based on interdisciplinary knowledge, permitting to implement monetary models to tame volatility and allow regulatory access to participants’ identity,” Saga Foundation founder and president Ido Sadeh Man said. “We are fortunate to have the involvement and insights of global leaders, who along with the other members of our advisory council, are helping us to design the first non-anonymous blockchain-based digital currency.”
Additional members of the advisory council are:
- Prof. Dan Galai: co-developer of the Chicago Board Options Exchange’s Volatility Index (VIX)
- Prof. Emin Gün Sirer: Professor and co-director at the Initiative for Cryptocurrencies and Smart Contracts at Cornell University
- Prof. Raz Chen-Morris: Humanities Department Chair at the Hebrew University of Jerusalem
The Saga Foundation is supported by accredited investors, VCs and hedge funds, including Mangrove Capital Partners, Lightspeed Venture Partners, The Singulariteam Technology Group and Initial Capital.