French Bank Introduces Euro-Pegged Stablecoin
Societe Generale-Forge, a French bank, has introduced a euro-pegged stablecoin called EUR CoinVertible (EURCV) on the Ethereum blockchain. The stablecoin is exclusively available to qualified institutional customers after they complete the bank’s KYC and AML processes. This move comes as a response to the growing demand for a new settlement asset for blockchain transactions.
10 Million EURCV Tokens Mined
According to Etherscan, 10 million EURCV tokens were mined three days ago, with one digital wallet address controlling all the tokens in circulation. The smart contract code for ERC-20 requires authorization from a centralized registrar, likely controlled by the bank, before transactions can be completed.
Crypto Experts Slam EURCV
An anonymous contract developer using the handle alephv. eth criticized the coding process of the stablecoin on Twitter. NFT and DeFi entrepreneur Foobar called the stablecoin a “laughing stock,” while crypto researcher Mason Versluis described the code as “absolutely horrible.” Versluis advised the French bank to “stop trying to weasel” into crypto.
Ryan Berckman Offers More Balanced Analysis
Ryan Berckman, an ether investor, provided a more balanced analysis, suggesting that conventional financial companies, including SGF, will transition to blockchain and digital assets in “baby steps.” He noted that SGF’s claim of being the first bank to deploy an institutional stablecoin on a public blockchain could be incorrect, pointing to the AUDN stablecoin issued by the National Australia Bank (NAB) in March. Berckman expects more banks to launch stablecoins on public networks in the future.
Conclusion: Banks Entering Crypto Space Despite Criticism
Despite the backlash from crypto experts, the introduction of EUR CoinVertible (EURCV) by Societe Generale-Forge indicates that traditional banks are slowly but surely entering the digital asset space. As more banks experiment with launching stablecoins and other blockchain-based solutions, it’s essential to recognize the growing role of digital currencies in the financial world. The crypto community will likely continue to scrutinize the quality and security of these new offerings, ensuring that established institutions are held to high standards as they venture into the world of cryptocurrencies.