There is no shortage of stablecoins in the cryptocurrency industry. SGA still managed to present itself as a different breed, albeit it also shows similarities with Facebook’s Libra.
Most stablecoins are pegged to one fiat currency and maintain a value peg that way.
Introducing a new era of Stablecoins
Saga Monetary Technologies does things a bit differently.
Rather than pegging SGA to one currency, it is linked to a basket of fiat offerings.
In doing so, the asset remains relatively stable and can still be used as a free-floating currency.
This approach by Saga Monetary Technologies aims to appease regulators around the globe.
Rather than threatening financial stability, SGA seems to strengthen multiple economies in one go.
This is not all that different from how Facebook initially presented its Libra currency several months ago.
Despite the benefits this stablecoin provides on the surface, it is also a very complex offering in many different ways.
Although SGA will remain a stablecoin, its team is looking to move away from the current basket of currencies fairly soon.
If successful, this currency will become completely unpegged, and solely rely on “trust in its value”.
That would make this stablecoin more like fiat currencies in the real world today, as those values are based entirely on mutual trust as well.
Only time will tell if this approach is feasible, as the path to good intentions is often paved with multiple roadblocks.