Content adapted from this Zerohedge.com article : Source
The bankers are starting to embrace the idea of cryptocurrency. It grew to the point that they are now going to start a global currency without the volatility associated with the existing cryptocurrencies. This new currency, called the Saga, will be tied to the price of fiat.
So far it received $30 million in financing. It is designed not to replace the existing fiat structure but to compliment it.
Authored by William Suberg via CoinTelegraph.com,
A group of financiers will create a "complimentary global currency" subject to random identity checks and pegged to fiat, Financial Times reports March 22.
_image courtesy of CoinTelegraph_
Discussing plans for Saga, which will feature a Swiss foundation and advice from various banking figures, chairman of JPMorgan Chase International and ex-governor of the Bank of Israel Jacob Frenkel said there was appetite for a notionally non-volatile cryptocurrency.
The foundation has already accrued $30mln in investments, and plans to issue tokens at an initial price of $0, these "entitling its investors to a rising number of Saga as usage of the cryptocurrency grows."
"While Blockchain technologies have gained growing acceptance, encryptic currencies have raised public policy concerns, since they are anonymous, unbacked, and are highly volatile," Frenkel told the publication.
"I share these concerns and see great value in Saga's vision to address them properly."
The move appears to be a fresh admission of the virtues of cryptographic technology for issuing and supporting new global currencies from the banking sector amid an ongoing trend. However, organizers are up-front about the highly-controlled nature of all aspects of Saga's timeline.
Purchasing tokens "will require owners to pass anti-money laundering checks and allow national authorities to check the identity of a Saga holder when required," providing zero anonymity.
"We are not aiming for Saga to replace any national fiat currencies, but to be a complementary global currency," Saga founder and president Ido Sadeh Man continued.
"We are targeting people who are holding digital currencies and looking for safe harbours from the raging volatility."
Non-adapted content found at zerohedge.com: Souce
AKA stablecoins? stablecoins will be one of the most powerful use cases of blockchain
Swiss wants to assure people that can have what people want without volatility. However, isn’t the volatility the reason why people are so excited? Let’s admit, there are some major problems in the cryptocurrency market. By far the biggest issue in the cryptocurrency market is the too high volatility. The prices of cryptocurrencies on rise and fall dramatically over a short period of time. When crypto can drop by as much as 49 percent in less than 24 hours, then the volatility of the market is too high. There are a number of reasons for volatility in the market but perhaps the biggest contributor is the activities of “whales.” that have large cryptocurrency holdings. They are able to swing the market by manipulating the price of a cryptocurrency. Another reason Swiss wants to create its own nonvolatile cryptocurrency is this “Pump and Dump ICO schemes”. And last, but not least “The Activities of Cybercriminals and Criminals.
Its interesting to see what will come of this but we will see.
I think the market should be the one to decide. I actually believe there is a place in the market for another stable cryptourrency, but one which is transparent about the assets backing it and with regular audits. Also, completely Independent of an exchange.
Interestingly, Switzerland has not been in the frontlines of crypto revolution. Will be curious to watch what happens. Thanks for this post! Upvoted.
Nice post, thank you!
nice photography..i like it..
thanks for sharing.....
So it will essentially be the Swiss version of Tether? Hopefully they will actually provide audits proving they're holding fiat for every coin that gets circulated.
The banks have seen that global fight against cryptographic technology isn't just going to last, so they are bringing the control nature of their banking operation into the cryptocurrency platform. To me, it's just a cover up operation, a pretense. They knew how important cryptos are but don't want to lose their tight control in the financial world.
Interestingly @zer0hedge, May Indonesia be at the forefront of the crypto revolution. Will be curious to see what happens next. Thanks for this post!
well post sir.
every day know some thing new metter....
what does metter mean?
nice post..
Thanks for sharing..
nice comment..
Thanks for sharing..
So they are trying to be a misc of cryptos and fiat money, getting the gap between those worlds. Good! I don't know if this will be succeed but that will fix a problem that we have today.
Saga coin I should get it when it just begining so I shoul get I couse it looks interesting.
This is a new step towards the future, be ready to moon, because if they actually succeed removing some volatility in their coin, all the crypto world will get an enormous publicity for free!
I support this project because, the worst that can happen is some bankers to get even more frustrated about the potential and utility of the Blockchain technology.
Guaranteed to fail, scam in the making...From ancient times to now, one thing has been consistent, markets are dynamic, value has always been demand and supply, it does not matter the law of the day, if there is no demand, there is no value
A global currency without the volatility associated with it!! This is more than just banks joining cryptocurrency which would have been the most interesting news for me. Saga is redefining my description of the cryptocurrency market which I've always associated with extreme volatility which keeps prices unstable. Cryptocurrency can't be avoided if one plans to have better means of payment. The efficiency in paying within a less time has been a huge win for cryptocurrency over banks.. And slowly I believe more banks are going to jump on the bandwagon.
I'll take a million.