A new stablecoin pegged to the euro was criticized by some analysts, but it is currently unavailable to the general public.
A decision to restrict peer-to-peer transactions has prompted criticism of a new stablecoin tethered to the euro that was released in France.
On April 20, the French bank Societe Generale-Forge (SGF) published EUR CoinVertible (EURCV), a stablecoin based on Ethereum that is only available to qualify institutional customers.
Observers who examined its smart contract code determined that its ERC-20 transfers must first be approved by a centralized registrar, presumably one under the bank’s control before the transaction can be processed.
In a separate post, she derided the code as a “radical commitment to inefficiency in the name of regulation.”
Nonfungible token project inventor “foobar” tweeted to his over 127,000 followers on April 20 that the code is “the worst I’ve ever seen” and that the stablecoin is a “laughingstock.”
Mason Versluis, a crypto researcher, remarked that the code was “absolutely horrible” and advised the French bank to “stop trying to sneak into crypto.”
Berckman is “certain” that additional banks will launch stablecoins on public networks in the coming months, stating that SGF will not be the last institution to do so.
At least initially, SGF’s stablecoin is not intended for public consumption. According to the bank’s announcement on April 20, EURCV is restricted to institutional clients onboarded through Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
The stablecoin is intended to bridge the divide between traditional capital market assets and the ecosystem of digital assets.
On April, 10 million EURCV tokens were generated on Ethereum, according to the Ethereum explorer Etherscan. Each of the ten million tokens is held by a single wallet address.
The stablecoin was introduced in response to the rising demand for a new asset to resolve on-chain transactions.
Also Read: Subsidiary of Societe Generale introduces Ethereum-based stablecoin linked to the euro
