The current digital currencies are very volatile non-predictable. For that reason, there has been the talk of developing a more stable nonvolatile digital currency. Several financiers are coming together to create a better global currency Saga, which will have random identity checkpoints. This currency will also be connected to fiat according to a report from financial times.
The plan is to create saga which will incorporate a Swiss foundation supported by advice from several banks. The group will also have on board JP Morgan Chairman and Jacob Frenkel who is the former governor of the Bank of Israel.
The Swiss foundation has already received $30 million from investments and is planning to issue tokens which will have an initial price of $0. This will entitle the investors increased the number of Saga as the usage of the digital currency goes up.
According to Frankel: “Even though blockchain has become very popular and many people are adopting it, encrypted currencies have issues and are raising public policy concerns. This is mainly because of their anonymity, being unbacked and are highly volatile. I have also experienced these concerns, and I see a great value in Saga’s vision to address the problems properly.”
The moves seem to be an admission by the bankers that digital currencies may be the future, especially in replacing the centralized banking sector. However, the developers’ method of wanting to control every aspect of saga may face resistance because people seem to be enjoying anonymity.
The process of acquiring tokens in Saga may be complicated because investors will be required to provide anti-laundering checks so that national authorities will be able to check any saga holder when they want. They believe by doing that there will be zero anonymity and the currency will be safe.
According to the founder of Saga who is also its president, Ido Sadeh Man: “Saga will not be working to replace any national fiat currency, it will work as a complimentary global currency.”