Money is changing. Digital currencies present both promise and challenges: Who can issue this new money? How will it be regulated? What is the underlying logic and value?
Saga addresses public policy concerns raised by these developments. Non-anonymous and reserve backed, Saga is supported by global subject-matter leaders. Saga sees itself as complementary to the existing financial system.
Digital currencies attract ever-growing attention: they bring diversity to an otherwise monolithic monetary system.
Their ambition is exciting: brand new models, altered accountability and better apportioning of risk and reward.
However, the task of introducing new currencies is challenging. Delivering the true functions of currency first requires wide acceptability and a high level of trust.
Approached sensibly, volatility can be tamed, a significant step towards the trust and acceptance necessary for currency to serve its intended purpose.
The design of a currency requires a broad, interdisciplinary effort. While technology provides the tools, the essence resides in solid monetary policy.
Saga has assembled a team of world leaders, combining expertise from several fields: Economics, Mathematics, the Humanities and Social Sciences, to establish the new currency.
Currency is simply a model that quantifies trust and agreement. Trust must be earned through the demonstration of value.
Saga deploys a mathematical model, implementing a variable fractional reserve. This is held in a basket of traditional currencies, hosted by reputable and supervised banks. In addition, Saga’s money supply is adjusted according to the size of its economy.
The variable fractional reserve ratio continuously adapts: in a newborn Saga economy, when public trust is limited, the reserve ratio is high. As Saga’s currency grows, the ratio decreases, reflecting growing trust in Saga.
There is a balance to be struck between participant privacy and the responsibilities of regulators. Saga is the first non-anonymous digital currency, with a formal KYC banking process for every participant.
Saga is a non-profit foundation headquartered in Switzerland and audited according to the rules of the Swiss Regulatory Authority.