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Nobel Prize-Winner Myron Scholes Backs Stablecoin to Rival Facebook’s Libra

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The Saga Foundation, a Swiss non-profit created last year dedicated to developing new technologies in open and decentralized software, is launching a new virtual currency called Saga (SGA). The token is connected to the International Monetary Fund’s (IMF’s) cash reserve that can initially only be owned by accredited and identified investors. The news was published by CNBC on December 10.

A CBDC in Disguise?

The Saga (SGA) token launched this Tuesday is the first cryptocurrency that seeks to emulate the management mechanisms of a central bank. The founders include a group of famed economists and financial innovators who want to create a digital currency that meets the needs of the classic financial world, without making central banks and regulators nervous.

To obtain SGA, it is necessary to undergo know your customer (KYC) practices, assuring Saga’s economy is compatible with traditional financial institutions. Moreover, unlike Libra, the value of Saga will be linked to the IMF’s Special Drawing Right (SDR), an international reserve asset that’s included in a basket dominated by the Euro and U.S. dollar.

Its monetary policy will be automatically regulated by a smart contract using a method very similar to that of fractional reserves used by banks. Saga’s smart contract adjusts the money supply to meet market demand in order to avoid market fluctuations. So, when the economy expands, the contract increases SGA supply, slowing price appreciation. Conversely, when Saga’s economy shrinks, the contract reduces the money supply. The same job a central bank does by changing interest rates.

According to Saga, its governance model would be more democratic than that of its rival Libra. In Saga, “the holders are

the sovereign of the currency” in the sense that they will have the opportunity to decide who will be part of Saga’s board of directors and steer its monetary policy. Although there is this possibility of voting, Saga will be partly managed by a central authority as according to the firm, central decision-making is inevitable to create a global digital currency.

The blockchain is therefore limited to the execution of contracts, all other governance functions must occur on-top of it.

Developed by Bankers for Bankers

The team behind Saga has raised funding from a group of investors up to the tune of $30 million. Some of the investors include Initial Capital, Mangrove Capital, and the Singulariteam Technology Group.

According to the founder and president of Saga, Ido Sadeh Man, launching the Saga tokens via an initial coin offering (ICO) would have been counterproductive to the lofty ambitions of the project. In fact, more than a truly global currency, Saga seems to be a cryptocurrency created specifically for the traditional financial sector. Having mandatory KYC, a manipulable monetary policy, and the value covered by a basket of FIAT currencies, Saga is nothing but a classic currency disguised as a cryptocurrency.

The founders themselves explicitly declare that they do not believe in decentralized governance models such as Bitcoin as they are inefficient and unpredictable. However, Saga could be a competitor to Libra, as its reputation is well regarded by traditional financial institutions. However, as reported by the CNBC, currently the SGA token will not be available for US citizens due to regulatory uncertainties.

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Latest News and Top Headline for Facebook Libra, January 18th, 2020

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  • Facebook’s Libra Association appoints Committee to Pilot Technical Growth of the stablecoin
  • Regulators Keep Going Back and Forth

Regardless of the issues Facebook’s proposed coin Libra is facing with Regulations, the company is still making plans to enhance the smooth sailing of the coin once it is released. Libra Association, the ruling body of the Libra coin proposed by Social media giant Facebook, recently established a new committee to run the technical aspect of Libra coin.

According to the official press release, Libra Association had chosen to establish a team of five members to run is the technical wing. These five members comprise of prominent experts from several organizations in the financial technology

and blockchain sector.

The committee is made up of Bison Trails CEO and founder Joe Lallouz, Anchorage co-founder Diogo Monica, Calibra core product lead George Cabrera III, Union Square Ventures partner Nick Grossman, and Mercy Corps director of emerging technology Ric Shreves.

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By supervising the procedures underlying the Libra network’s innovation, the committee will develop the technical roadmap for the Facebook Libra ecosystem. Also, they aim to create working groups to give priority to assigned ways of study. Similarly, they are to govern the production of a codebase and facilitate an active community in the Libra community.

The official declaration confirms that the development of a distinct committee is in aligns with the Libra venture’s objective of veering into a decentralized and self-governing “independent of anyone organization’s control.” commenting on this, the newly formed committee states that it will publish its rules relevant to technical administration and other relevant records by the end of first Quarter of this year.

Regulators Keep Going Back and Forth

In 2019, Facebook’s assertion on Libra Stablecoin and payment ecosystem, concerning the Calibra wallet steered a ruse in the crypto sphere. It instantly became a vital subject of interest among regulators and legislators as the Social media giant Facebook has a dent in its history of handling data and specifically, user information. Also, Marcus assured that all information associated with Libra coin will be handled separately from data associated with its social media platform Facebook.

Regulators have been going back and forth to determine the right way to categorize the new asset. Sometime in November 2019, U.S regulators released a new law that would place the coin under securities rules. After the bill was passed, the Libra Association secretly amended the proposed coin’s paperwork. The major change was the end of profits that will be paid to early investors. The modification devoid of likely contradictory interests between the Libra Association members and end-users of the coin, but could answer to concerns that Facebook Libra could be classified as a security.

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Anchorage, Bison Trails Execs to Helm Libra’s New ‘Technical Steering Committee’

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The Libra Association announced Thursday it had formed a technical steering committee to coordinate the design of the Libra platform.

The new committee, composed of Anchorage co-founder Diogo Monica, Calibra core product lead George Cabrera III, Bison Trails founder Joe Lallouz, Union Square Ventures partner Nick Grossman and Mercy Corps emerging technology director Ric Shreves, was formed on Dec. 16, 2019, according to an announcement on the Libra developers page. It’s the latest incremental update to the Libra roadmap following a wave of founding member defections last October.

The newly-announced group will oversee the project’s technical roadmap, guide codebase development and try to build a developer community around the Libra project. Prior to the stablecoin’s public debut in June 2019, Facebook developers established the project’s technical underpinnings. Many of those staffers have since been transferred to Facebook’s crypto subsidiary, Calibra, including Facebook’s former blockchain lead, David Marcus, and tech lead Ben Maurer.

The Libra technical steering committee plans to publish a governance framework

The Libra Association announced Thursday it had formed a technical steering committee to coordinate the design of the Libra platform.

The new committee, composed of Anchorage co-founder Diogo Monica, Calibra core product lead George Cabrera III, Bison Trails founder Joe Lallouz, Union Square Ventures partner Nick Grossman and Mercy Corps emerging technology director Ric Shreves, was formed on Dec. 16, 2019, according to an announcement on the Libra developers page. It’s the latest incremental update to the Libra roadmap following a wave of founding member defections last October.

The newly-announced group will oversee the project’s technical roadmap, guide codebase development and try to build

a developer community around the Libra project. Prior to the stablecoin’s public debut in June 2019, Facebook developers established the project’s technical underpinnings. Many of those staffers have since been transferred to Facebook’s crypto subsidiary, Calibra, including Facebook’s former blockchain lead, David Marcus, and tech lead Ben Maurer.

The Libra technical steering committee plans to publish a governance framework before the end of March 2020, according to the announcement, which “will include the process by which the open source community can propose technical changes to the network and a transparent process for evaluating those proposals.”

While Libra originally envisioned a launch by mid-2020, regulatory pushback may delay this, Facebook CEO Mark Zuckerberg said during an interview late last year.

before the end of March 2020, according to the announcement, which “will include the process by which the open source community can propose technical changes to the network and a transparent process for evaluating those proposals.”

The Libra Association announced Thursday it had formed a technical steering committee to coordinate the design of the Libra platform.

The new committee, composed of Anchorage co-founder Diogo Monica, Calibra core product lead George Cabrera III, Bison Trails founder Joe Lallouz, Union Square Ventures partner Nick Grossman and Mercy Corps emerging technology director Ric Shreves, was formed on Dec. 16, 2019, according to an announcement on the Libra developers page. It’s the latest incremental update to the Libra roadmap following a wave of founding member defections last October.

The newly-announced group will oversee the project’s technical roadmap, guide codebase development and try to build a developer community around the Libra project. Prior to the stablecoin’s public debut in June 2019, Facebook developers established the project’s technical underpinnings. Many of those staffers have since been transferred to Facebook’s crypto subsidiary, Calibra, including Facebook’s former blockchain lead, David Marcus, and tech lead Ben Maurer.

The Libra technical steering committee plans to publish a governance framework before the end of March 2020, according to the announcement, which “will include the process by which the open source community can propose technical changes to the network and a transparent process for evaluating those proposals.”

While Libra originally envisioned a launch by mid-2020, regulatory pushback may delay this, Facebook CEO Mark Zuckerberg said during an interview late last year.

before the end of March 2020, according to the announcement, which “will include the process by which the open source community can propose technical changes to the network and a transparent process for evaluating those proposals.”

While Libra originally envisioned a launch by mid-2020, regulatory pushback may delay this, Facebook CEO Mark Zuckerberg said during an interview late last year.

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News Today – Top Headline for Facebook Libra, January 10th, 2020

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  • Facebook CEO Mark Zuckerberg omits Libra from his 2030 projection
  • Zuckerberg agrees to Government partnership for his company

Shocking how Libra is not part of Zuckerberg’s 2030 projection. The CEO of renowned social media app Facebook in a recent interview emphasize on digital commerce, but not for once did he mention his proposed digital currency Libra.

Mark Zuckerberg envisioned what is to come in 10years. His projection says a lot about Facebook’s plan for financial services. P.S – this does not in any way involve Libra. The CEO revealed a list of decades’send and for his social media Giant, involving a comprehensive prospect for Facebook to centralized finance and business. Commenting on this, Zuckerberg went thus:

“Over the next decade, we hope to build commerce and payment tools so that every small business has easy access to the same technology that previously only big companies have had.”

That vision includes technologies that Facebook has been pursuing like Messenger-based customer support, Instagram storefronts, remittances through Whatsapp. Zuckerberg’s aspiration is for his company’s efforts to “go a long way towards creating more opportunities around the world.”

In all his speech, Zuckerberg did not for once mention Libra, the vague stablecoin Facebook previously announced last summer. Not to be biased, Facebook’s crypto associate, Calibra is only one of the 20 partners supporting the stablecoin. Facebook states it will be hands-off with the cryptocurrency it created.

Zuckerberg agrees to Government partnership for his company

The Libra Association, the governing committee for the project flaunts itself as on a mission to “empower billions of people through the creation of a simple global currency and financial infrastructure.”

Previously, Zuckerberg kept his distance from the Libra, and since he does not run the association, it was easier for him. Regardless, he has still vouched before Congress about it, so as his deputy David Marcus. It appears that Zuckerberg speaks about Libra without actually mentioning its name. According to the other parts of his 10-year projection, Zuckerberg made mention of virtual reality without mentioning Facebook’s proposed digital currency Libra.

Though Zuckerberg evades Libra, he did not pass on the opportunity to address the barrage of criticism regulators around the globe have thrown his way. The proposed currency has been having regulatory issues since it was announced. Several policymakers and economic administrators have shared their thoughts on Libra. Most stated that the proposed currency is potentially disastrous to the financial world order.

Those criticisms are in addition to Facebook’s bombastic war on other regulatory fronts, including data privacy and election tampering. Here, Zuckerberg allows that the company should work in partnership with governments, as long as those governments remain afloat.

He stated: “As long as our governments are seen as legitimate, rules established through a democratic process could add more legitimacy and trust than rules defined by companies alone.”

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