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Saga (www.saga.org) is a UK company limited by guarantee, based on non-for-profit principals. Launched on December 10th 2019, the Saga token (SGA) is a global digital currency that aims to complement existing national currencies and seeks to work in collaboration with banks, financial institutions, and regulators. Among its Advisory Board members are top financial experts, technologists, and economists from all around the world, including Jacob A. Frenkel, PhD, Chairman of JPMorgan Chase International; Prof. Myron Scholes, Nobel Laureate in Economic Sciences, Co-originator of the Black-Scholes options pricing model; Leo Melamed Founder of financial futures and former Chairman of the Chicago Mercantile Exchange (CME); Prof. Emin Gün Sirer, blockchain and cryptocurrency researcher from Cornell University; and and Prof. Dan Galai, the co-developer of the Chicago Board Options Exchange's Volatility Index (VIX).
SAGA ANNOUNCES THE OFFICIAL LAUNCH OF THE SGA TOKEN
Tuesday, December 10, 2019 5:00 AM
Saga today announces the launch of the Saga token (SGA), the first global, stabilised, digital currency controlled by its holders. SGA allows global citizens to store and move value without friction across borders.
SGA complements existing national currencies and offers a store of value outside the remit of national government and banking structures - a need accelerated by the speed of globalisation. Working in collaboration with banks, financial institutions, and regulators, SGA acts as a bridge to bring digital currencies into the mainstream, by reducing risk and building trust.
SGA is the first digital currency that replicates the mechanics of central bank national currencies and applies them on a global scale:
- Endowed with a refined monetary model and inspired by proven central-banking instruments.
- Governed by its holders through a variety of voting mechanisms, including voting for the executive council who manages the project. This puts the power in the hands of modern global citizens, rather than corporates or any single government.
- Backed by a reserve of assets that reflect the International Monetary Fund’s SDR (a basket of currencies containing USD, EUR, GBP, CNY and JPY). This acts as a stabilising mechanism to reduce volatility. The model supports the constant growth of the currency, while gradually gaining intrinsic value and separating from the reserve.
- Non-anonymous and compliant as currency holders have to undergo an online Know Your Customer (KYC) process that ensures compliance with Anti-Money Laundering (AML) standards - but their privacy is kept.
Ido Sadeh Man, Founder of Saga, said: “Currencies have not kept up with the pace of globalisation 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 complementary, global, non-governmental currency. We have set out to address this need by launching the first stabilised, digital currency governed by its holders and compliant with AML regulations.”
In order for SGA to serve as a global currency, Saga has built a robust monetary model and an effective system of governance. The key feature of its monetary model is a blockchain-based, liquidity provider: a smart contract that adjusts the supply of Saga tokens to meet market demand, and to limit the impact of fluctuations in market confidence on SGA price. The proceeds of issuing new SGA tokens are kept in a reserve, held in regulated banks and stored in liquid assets that replicate the currency composition of the SDR.
SGA holders are the masters of the currency and, as a result, they will govern the Saga economy through a variety of voting mechanisms, designed to facilitate genuine representation of participants - balancing between identity and stake - and to generate long-term success for the currency. The Saga governance model allows holders to exercise authority while also supporting expertise-based governance.
Ido Sadeh Man, Founder of Saga, continues: “Since announcing the project in 2018, trust has been fundamental to everything we have done. We have developed monetary and governance models that people can trust, utilising technology to bring this to life and leverage the transparency it offers. These models are a first in the digital currency space where it is not uncommon for a small number of wallets to control the tokens’ economy. We believe that the launch of SGA is a milestone in the evolution of non-governmental solutions for money and is a true combination of the best of what central banks, corporates, and blockchain have to offer.”
Dr. Jacob Frenkel, Chairman of the Board of Trustees of the G30 and of JPMorgan Chase International:
“While Blockchain technologies have gained growing acceptance, encryptic currencies have raised public policy concerns, since they are anonymous, unbacked, and highly volatile. I share these concerns and see great value in Saga’s vision to address them properly.”
Prof. Myron Scholes, Nobel Laureate for Economics for the Black-Scholes Model:
“Blockchain technologies will change financial infrastructure, from a current focus on transactions processing to transactions analysing. 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.”
Mark Tluszcz, CEO at Mangrove Capital Partners:
"Saga represents a step change in maturity for digital currencies. The first that combines material benefits to the existing financial system with the potential and needs of the digital world. It’s the strongest team in the space and we are delighted to be backing the project."
Ido Sadeh Man, Saga Foundation Founder & Chairman of the Board:
“The creation of Saga is based on interdisciplinary knowledge, permitting to implement monetary models to tame volatility and allow regulatory access to participants’ identity. 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.”