Saga launches a global digital currency
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.
Saga Monetary Solutions (www.saga.org) is a UK company limited by guarantee, based on non-for-profit principals. 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.
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.”