Saga Foundation is developing a secure digital currency (SGA Token) that will serve as a global means of exchange. The currency will be enriched with sophisticated, central-bank-like mechanisms that will protect its users.
Ido Sadeh Man, founder and council president of the Saga Foundation says the platform has set in place measures in accordance with banks’ and regulators’ requirements to bring about transparency. The SGA Token will have two significant features of non-anonymity and tamed volatility.
A variable fractional reserve of the token deposits in regulatory banks within reputable jurisdictions. The reserve will be transparent and governed by a blockchain-based mathematical algorithm.
This Swiss foundation is under Swiss Legal Jurisdiction and supervised by ESA – (Federal Supervisory Authority for Foundations) and AML compliant through its membership in the Swiss VQF SRO. It will, however, operate from both Israel and Switzerland.
The foundation has a panel of professional experts which includes experienced entrepreneurs, technology experts, researchers, economists, and financial professionals.
Saga was funded with 30 million dollars at the beginning without an Initial Coin Offering. Ido Sadeh Man says the move not to have an ICO was deliberate to bridge the gap between the established financial market and the world of digital currencies. The intention was to approach accredited investors who can question their ideas before going to the public for funds.
Role of Regulators in the Blockchain Industry
Regulators have taken most of the headlines this year in the crypto industry. The crypto-market, which is not under regulation, clouds in all kinds of secrecy and left many investors at risk of losing their money to frauds.
Ido Sadeh Man believes that sound regulatory strategies necessary to help grow the industry.
“A sound regulatory approach is an overall positive step in the long haul, a step which helps to cleanse the noise and hype in favor of a longer-lasting value proposition,” he said.
The slump in the prices of cryptocurrencies now attributes to a lack of trust in the market. This is because of unhindering speculation, and sometimes manipulation.
“Additionally, a sound regulation is one that provides clarity. It draws a clear line between legitimate and illicit actors and activities,” Ido Sadeh Man explained.
Working together with regulators is one of Saga’s way of ensuring the SGA Token security. According to the company, they will only onboard clients who complete a banking-standard KYC/AML processes, in accordance with the Swiss AML Act.
The biggest concern in the blockchain industry has been ICOs as many fail to deliver value to their investors. The U.S. Securities and Exchange Commission (SEC) expanded its crackdown on ICOs earlier this year.
There is a study by financial research firm Autonomous Research. It says ICOs raise $20 billion since the start of 2017. Moreover, this is around $18 billion more than the previous year. In 2017, the ICO advisory firm Statis Group identifies more than 80 percent of ICOs as scams.
How did you like this article? Please let us know so that we can better customize your reading experience.