A blockchain firm advised by Nobel laureate Myron Scholes just launched a rival to Facebook's libra
One such cryptocurrency is SGA (Saga) put out by Saga Monetary Technologies. The SGA token was released on December 10, 2019. SGA will be pegged to fiat currencies that will be a stable cryptocurrency linked to the IMF's basket of currencies with special drawing rights that back the tokens. All this will link back to Switzerland and the Bank of International Settlements. The cryptocurrency will be "tethered" to the BIS's basket of currencies. The goal is to bring all of the world's currencies to parity. Thanks, all you libertarians and anarchists. See what you did to us? You just ushered in this technological monstrosity and if you upset them they will switch your financial application off on your smart phone. Martin Armstrong at Armstrong Economics says something interesting. He stated that: "I have confirmation that the central banks have NOT been apart of this and they are being pushed into the corner." If this is the case then we might be seeing a power struggle over the control of cryptocurrencies. That might be a good sign.
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Source: USA Today
Crypto Is Here: US Federal Reserve Mulls Over Launching Digital Dollar
11/20/2019 | By Alex Dovbnya
The Federal Reserve is to decide whether it's worth issuing a central bank digital currency (CBDC) for households and businesses
The US Federal Reserve now deeply thinks about the possibility of launching a digitalized version of the US Dollar.
According to the letter, which was penned by Federal Reserve Chairman Jerome Powell in response to congressmen French Hill (R-Ark.) and Bill Foster (D-Ill.), the central bank is currently evaluating "the costs and benefits" of issuing a central bank digital currency (CBDC).
Addressing all risks
According to Powell, Federal Reserve officials are keeping a close eye on other central banks that might also consider launching their own cryptocurrency. On top of that, they are "scrutinizing" Facebook's Libra, the most talked-about crypto project of 2019 that riled up politicians and regulators around the globe. The dogged social media giant plans to push forward with its crypto plans despite regulatory pushback.
Before starting the development of its own cryptocurrency, the Fed needs to evaluate the potential impact of a CBDC on monetary policy and financial stability of the US economy while managing possible security risks.
Please go to USA Today to read the entire article.
________
Ed.'s note: Question? How many people do you know who will walk into this system when they are given a free offer? See that smile on Myron Scholes' face below in the image? He knows you will.
Source: CNBC
A blockchain firm advised by Nobel laureate Myron Scholes just launched a rival to Facebook's libra
December 10, 2019 | By Ryan Browne
Saga is launching a virtual currency which pegs its value to the basket of currencies that form the IMF's special drawing rights. The U.K.-based company's advisory board includes the likes of Nobel laureate Myron Scholes and J.P. Morgan's Jacob Frenkel. But the firm doesn't plan to launch its token in the U.S. yet, claiming it doesn't currently have the regulatory clarity required to do so.
One blockchain company thinks it has an alternative to Facebook's digital currency proposal.
With an advisory board that includes top economists like Nobel Prize-winner Myron Scholes, U.K.-based firm Saga hopes to introduce a global currency that regulators find agreeable.
The company on Tuesday launched its saga (SGA) token, a virtual currency tied to a basket of currencies in order to maintain a stable value. That's not too dissimilar to Facebook's libra, which was met with a barrage of regulatory opposition moments after being announced. But one key thing that sets it apart from that project is what Saga bases the currency's value on.
Rather than creating a new asset basket like libra's, Saga is pegging its token's value to bank deposits in the same group of currencies that form the International Monetary Fund's special drawing rights (SDR) — these are international reserve assets held by central banks to supplement their official reserves. The basket is heavily weighted in dollars, as well as the euro, Chinese yuan, Japanese yen and British pound.
Another distinction with libra is the fact that Saga won't be profiting from it. It's only acting as an issuer of the token, rather than building its own digital wallet for users to store and exchange it like Facebook is doing with Calibra. The SGA tokens will initially be available to purchase on Saga's website and is being listed on the cryptocurrency exchange Liquid.
"Unlike other players, we don't want to be the issuer and the payments layer and the custodian," Saga founder Ido Sadeh Man told CNBC in an interview. "We're focusing on the monetary part of it, on the issuance of a sound currency for global use, and we will increasingly liaise with partnerships in the realms of custodianship and of payments."
Like libra, SGA features the characteristics of a so-called stablecoin, which seeks to avoid the volatility of cryptocurrencies like bitcoin. Saga says it can stabilize the value of SGA with smart contracts — self-executing contracts on the blockchain that are used to adjust the money supply in order to meet demand.
As for how it will be used, Sadeh Man said the objective is for SGA to serve as a "complementary currency for cross-border payments." He gave the example of British consumers wanting to use it to pay for things on Amazon if the pound fluctuates in reaction to Brexit-related news. "This is where we see saga fitting in as a global currency."
Please go to CNBC to read the entire article.
________New: Powell told Congress today that the Federal Reserve is exploring whether it makes sense to issue its own digital currency that could be used by households and businesses pic.twitter.com/lH3pnSLkiV— Zachary Warmbrodt (@Zachary) November 20, 2019
Addressing all risks
According to Powell, Federal Reserve officials are keeping a close eye on other central banks that might also consider launching their own cryptocurrency. On top of that, they are "scrutinizing" Facebook's Libra, the most talked-about crypto project of 2019 that riled up politicians and regulators around the globe. The dogged social media giant plans to push forward with its crypto plans despite regulatory pushback.
Before starting the development of its own cryptocurrency, the Fed needs to evaluate the potential impact of a CBDC on monetary policy and financial stability of the US economy while managing possible security risks.
Please go to USA Today to read the entire article.
________
Ed.'s note: Question? How many people do you know who will walk into this system when they are given a free offer? See that smile on Myron Scholes' face below in the image? He knows you will.
Source: CNBC
A blockchain firm advised by Nobel laureate Myron Scholes just launched a rival to Facebook's libra
December 10, 2019 | By Ryan Browne
Saga is launching a virtual currency which pegs its value to the basket of currencies that form the IMF's special drawing rights. The U.K.-based company's advisory board includes the likes of Nobel laureate Myron Scholes and J.P. Morgan's Jacob Frenkel. But the firm doesn't plan to launch its token in the U.S. yet, claiming it doesn't currently have the regulatory clarity required to do so.
Myron Scholes
Patrick Fallon | Bloomberg | Getty Images
One blockchain company thinks it has an alternative to Facebook's digital currency proposal.
With an advisory board that includes top economists like Nobel Prize-winner Myron Scholes, U.K.-based firm Saga hopes to introduce a global currency that regulators find agreeable.
The company on Tuesday launched its saga (SGA) token, a virtual currency tied to a basket of currencies in order to maintain a stable value. That's not too dissimilar to Facebook's libra, which was met with a barrage of regulatory opposition moments after being announced. But one key thing that sets it apart from that project is what Saga bases the currency's value on.
Rather than creating a new asset basket like libra's, Saga is pegging its token's value to bank deposits in the same group of currencies that form the International Monetary Fund's special drawing rights (SDR) — these are international reserve assets held by central banks to supplement their official reserves. The basket is heavily weighted in dollars, as well as the euro, Chinese yuan, Japanese yen and British pound.
Another distinction with libra is the fact that Saga won't be profiting from it. It's only acting as an issuer of the token, rather than building its own digital wallet for users to store and exchange it like Facebook is doing with Calibra. The SGA tokens will initially be available to purchase on Saga's website and is being listed on the cryptocurrency exchange Liquid.
"Unlike other players, we don't want to be the issuer and the payments layer and the custodian," Saga founder Ido Sadeh Man told CNBC in an interview. "We're focusing on the monetary part of it, on the issuance of a sound currency for global use, and we will increasingly liaise with partnerships in the realms of custodianship and of payments."
Like libra, SGA features the characteristics of a so-called stablecoin, which seeks to avoid the volatility of cryptocurrencies like bitcoin. Saga says it can stabilize the value of SGA with smart contracts — self-executing contracts on the blockchain that are used to adjust the money supply in order to meet demand.
As for how it will be used, Sadeh Man said the objective is for SGA to serve as a "complementary currency for cross-border payments." He gave the example of British consumers wanting to use it to pay for things on Amazon if the pound fluctuates in reaction to Brexit-related news. "This is where we see saga fitting in as a global currency."
Please go to CNBC to read the entire article.
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