UK-based blockchain firm Saga just launched a new token called Saga (SGA) token which could potentially be the next big competitor of Facebook’s troubled Libra stablecoin.
Saga has the perfect recipe for success. An advisory board that boasts of leading economists like the Nobel Prize winner, Myron Scholes, and the Chairperson of JPMorgan Chase International and former Governor of the Bank of Israel, Jacob Frenkel, and a possible alternative to project Libra that could very well be welcomed by regulators and governments, the firm is all set to create a significant impression.
Would Saga token achieve what Libra stablecoin couldn’t?
On Tuesday, it launched its very own global virtual currency that regulators find compliant. Similar to Facebook’s Libra, SGA token will also be pegged to a currency basket to maintain stability in its value. However, what makes it unique is the fact that instead of creating a whole new basket of the asset class, like Libra, Saga is basing its token’s value to bank deposits of currencies that constitute the International
Monetary Fund’s special drawing rights (SDR). SDR, in its simplest definition, is an array international reserve assets that central banks hold in addition to their official reserves.
Another noteworthy distinction is that Saga will only act as a token issuer, and will not stand to gain from its market performance. Unlike project Libra, which is in the process of designing its own digital wallet to store Libra stablecoins, SGA tokens instead, will be available for purchase on Saga’s official website along with some affiliated cryptocurrency exchanges. cryptopolitan.com