Ido Sadeh Man, founder of Saga, the global stabilized digital currency, spoke to Cointelegraph in an interview on May 15. During the interview, he said that a digital currency backed by a basket of strong fiat currencies, along with Bitcoin, could be the answer to the current financial turmoil in the world economy.
The main barrier to CBDCs is their philosophy, not technology, according to the European Central Bank representative
Printing money is not sustainable
Ido believes that central bankinduced hyperinflation will cause problems in the future. He said that:
„It’s a solution that will bring very undesirable results in the long term.“
Instead, according to Ido, a basket of currencies would be inherently more resistant to fluctuations.
Ido suggests the SDR, which is a basket of reserve currencies that includes Saga. It covers the USD, Euro, Pound Sterling, Japanese Yen and Chinese Yuan. Man explained that the SDR is robust against price fluctuations caused by a single currency, and therefore is able to mitigate risk. He went on to say that:
„When some of the currencies in the Bitcoin Revolution, Bitcoin Billionaire, Bitcoin Profit, Bitcoin Circuit, Bitcoin Code, Immediate Edge, The News Spy, Bitcoin Trader, Bitcoin Evolution, Bitcoin Era are printing money, some of them are not printing money at the time and so, when one goes up the other goes down.“
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Bitcoin is the inspiration
Bitcoin was born as a result of the economic crisis in 2008. It was created to oppose the arbitrary monetary policies carried out by central banks. Since then, many currencies and digital technologies have been born inspired by its creation. Ido told Cointelegraph that Saga is one such project.
Saga’s stated goal is to create a currency that is not dependent on any national fiscal or monetary agenda. Man says such a currency can complement our lives by being able to store value and exchange value internationally. According to Ido, Saga’s approach lies somewhere between a stablecoin and Bitcoin. He explained that:
„We’re taking the approach as Bitcoin that we can’t control the money supply, which means that the Saga protocol doesn’t allow us to print money at any time.“
The long-term vision of Saga, says Ido, is to move under the same principles that guide Bitcoin.
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CBDCs are not the answer
Ido also commented on the emerging CBDCs. He believes that the digital central bank currency is a „tokenized“ currency. These digital versions of a national currency are not a real solution for the future of money.
Widespread use of a CBDC could mean that a large number of people unknowingly give a central authority unlimited and unrestricted access to the data of their economic life. Ido argues that privacy, custody and financial stability would be the three most challenging elements that a CDBC would face.
As Cointelegraph reported earlier, the U.S. Senate passed a new pandemic aid bill worth $485 billion to help small businesses and hospitals. A former president of the Bank of China said the digital yuan could eventually replace cash. Crypto Valley experts revealed that as the macroeconomy has changed, more and more people are considering Bitcoin as a hedge against the current troubled monetary system.