Not all cryptocurrencies are to be hated by economists, this was demonstrated in a collective announcement made for Saga, a cryptocurrency that is backed by reserves. This crypto by economists hold quite a few prominent people as part of their extended team.
The names behind the venture are some of the best known entities in the present world of finance, Saga holds Jacob Frenkel, chairman of JPMorgan Chase International and former governor of the Bank of Israel; and Leo Melamed, chairman emeritus of the CME Group as part of its advisory board.
Saga promises more to the community than just names by being a reserve backed cryptocurrency
In the announcement that was rolled out this Thursday, the Saga Foundation mentioned that the cryptocurrency will be termed as a non-anonymous, tamed volatility mechanism digital asset.
By incorporating these functionalities into a cryptocurrency, Saga aims for it to not challenge fiat but to work along with them as a complimentary digital currency.
It was also mentioned that the Saga foundation has already raised $30 million with investors such as Mangrove Capital Partners and Initial Capital, and does not plan to hold a “standing initial coin offering.”
“We didn’t want to do an ICO,” Ido Sadeh Man, founder and president of Saga told the Financial Times. “It didn’t look reasonable to start a low-speculation and low-volatility vehicle by launching a high-speculation and high-volatility process.”
The main aim of the Saga token is to create and function within a digital and global ecosystem that is also stable and promotes the usage of cryptocurrencies as a means for payment.
The cryptocurrency will be backed by a variable financial reserve that will be held by international standards. It was mentioned by the Saga foundation that the reserves will be “anchored to the IMF’s SDR” and “deposited with regulated banks through algorithms in the underlying Smart Contract System.”
Furthermore, all Saga holders will be required to fulfill know your customer (KYC) procedures in order to ensure that the cryptocurrency complies with anti-money laundering requirements as imposed by Swiss law.
It seems too good to be true
Since the crypto by economists has just been launched, further developments are to be expected. Most importantly, since the account of participation by the likes of Frenkel and Melamed remain non-contested but too good to be true, it remains to be seen if this proves to be a valid project.
The news of Saga’s launch is being reported by publications all over the web, but it seems that no one is pointing to the fact that a coin by the name of Saga already exists and its project is different from that of the Saga Foundation.
For a cryptocurrency backed by these renowned economists, one would think that it might have put some thought into potential issues stemming from copyright and other regards as well. Let’s see what the future holds for this one.