Saga Launches SGA Stablecoin Pegged To Fiat Basket As A Rival To Facebook’s Libra
Facebook's Libra has been at the receiving end of regulators and lawmakers at Capitol Hill, and Mark Zuckerberg's comments that if Libra won't be given the regulatory clarity then the US might lag behind in the race to become a market leader in the evolving tech of blockchain and cryptocurrencies, where he particularly hinted towards China.
Zuckerberg's comment was seen as a last dying effort by the founder to get a nod for its universal currency plan. However, just a few days later China's President did call for accelerated adoption of blockchain to become a market leader. Now a U.K based blockchain company Saga has come out with an alternative universal currency to Facebook's Libra.
Saga launched its universal currency on 10th December launched the saga token with a ticker symbol SGA. The blockchain firm also boasts of a startling advisory board comprising of Nobel laureate Myron Scholes and J.P. Morgan’s Jacob Frenkel.
The SGA Universal Digital Currency is similar to Libra but not Alike
While Facebook's Libra came under regulatory fire for its working model where the digital currency's value was backed by a basket of fiat currencies which irked the regulators most. They accused Facebook of bypassing regulations, as using multiple fiats would ensure that they do not fall under the jurisdiction of any regulatory body.
Saga learned from Facebook's mistake and instead of valuing its SGA token on multiple fiats, it draws its value from bank deposits that fall in the same group of currencies that form the International Monetary Fund’s special drawing rights (SDR). These SDR are held by central banks as a supplement to their official reserve. The SDR comprises multiple international currencies such as US Dollar, Euro, Chinese Yuan, Japanese Yen, and the British Pound.
The firm, unlike Libra, is not looking to profit from the project as it would just issue the token which will be listed on different exchanges, but it won't develop any wallet like Calibra to make a profit from transactions. Ido Sadeh Man, Saga founder told CNBC in an interview that,
“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.”
Saga claimed that SGA digital currency would bear the properties of the stablecoin where it would have a stable market value backed by the reserves. He explained that SGA can facilitate smooth cross-border payments.