Monday, December 5, 2022

Swiss Company Saga Earns $30 Million to Build New ‘Stable Coin’

Swiss Company Saga Earns $30 Million to Build New ‘Stable Coin’

Switzerland-based cryptocurrency company Saga just landed a $30 million USD deal to create a brand new, non-volatile cryptocurrency. The asset seems set to bring competition to related stablecoins like Tether and Dai. 

Also see: U.K. to Launch “Crypto Asset Task Force” to Harness Blockchain Benefits

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Never Too Late for Something New

Saga is seeking to create one of the first cryptocurrencies that is both non-volatile and non-anonymous. While the identification of users and traders is likely to stir some concern, Saga is claiming that there “needs to be a balance between the privacy of its users and the responsibilities of regulators.” As digital currency regulation inches closer to reality, some companies are looking to cooperate early.

Saga says it will use a formal “Know Your Customer (KYC)” model of banking for all its users. It has also garnered backing by the International Monetary Fund’s Special Drawing Right (SDR), which would allegedly knock out the volatility one so often witnesses in other digital assets.

The SDR was established in 1969 to supplement affiliate countries’ financial reserves. For Saga, these reserves will be “deposited with regulated banks through algorithms using smart contracts.”

So, Who’s on Board?

Saga’s advisory board includes several financial experts, including Professor Myron Sholes – a Nobel Laureate for economics. He believes the power of the blockchain and digital currency technology will lead to permanent, positive change in the global financial industry:

“Blockchain technologies will change financial infrastructure, from a current focus on transactions processing to transactions analyzing. 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.”

Saga’s board also includes figures like Dan Galai, co-developer of VIX; Leo Melamed, chairman emeritus of CME Group and a leading pioneer in financial futures, and Dr. Jacob Frenkel, chairman of JPMorgan Chase International and former governor of the Bank of Israel.

“While blockchain technologies have gained growing acceptance, encrypted currencies have raised public policy concerns, since they are anonymous, unbacked, and are highly volatile,” he commented. “I share these concerns, and see great value in Saga’s vision to address them properly.”

Saga – Does it Boast Legitimacy?

Saga is not classified as an ICO or “token generation event.” The company earned its funds for the upcoming project through a traditional funding round via several accredited investors, hedge funds and VCs including Lightspeed Venture Partners, Mangrove Capital Partners and Initial Capital.

Co-creator Sadeh Man feels that stable-coins are likely to become more common in the future as regulation takes a larger hold:

“Technology is not enough. The design of a currency requires a broad, interdisciplinary effort. While technology provides the tools, the essence resides in solid monetary policy… Saga’s economic model is designed to allow growth… Saga’s economy is compatible with traditional financial institutions.”

Would you invest in a non-anonymous cryptocurrency granted volatility was out of the picture? Post your comments below.

Images via Steemit, Cryptosec

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