Crypto Community Criticizes the Stable Euro’s Introduction
A new stablecoin pegged to the euro introduced in France has received negative feedback from many industry experts, but the general public is still waiting to get their hands on it.
On April 20, the Ethereum-based stablecoin known as EUR CoinVertible (EURCV) was introduced by French bank Societe Generale-Forge (SGF). This cryptocurrency is exclusively accessible to eligible institutional clients after going through the bank’s Know Your Customer (KYC) and Anti-Money Laundering (AML) processes.
The introduction of stablecoins came as a response to the growing need for a new settlement asset to process transactions on the blockchain.
According to data from Ethereum Explorer Etherscan, 10 million EURCV tokens were mined three days ago. A single digital wallet address controls all 10 million tickets in circulation.
According to observers who analyzed the ERC-20 smart contract code, before any transaction can be completed, it must first be authorized by a central registrar (possibly controlled by the bank), as required by the smart contract.
Anonymous competent contract developer using the handle alephv. eth tweeted a caption on April 20 mocking the stablecoin’s token allegations.
In another article, she mocked the law as “a radical commitment to incompetence in the name of regulation.”
Meanwhile, NFT and DeFi entrepreneur Foobar sent a message to his more than 127,000 followers calling it “the worst coin I’ve ever seen” and calling the stablecoin a “laughing stock.”
Cryptocurrency researcher Mason Versluis tweeted that the code was “absolutely awful” and advised the French bank to “stop trying to extort” cryptocurrency. Mason’s message has been retweeted more than 2,000 times.
Ether investor Ryan Berkman provided a more substantive analysis, though many others contributed criticism. He noted that many traditional financial firms, including SGF, will migrate to blockchain and digital assets in “small steps.”
Berkman noted that SGF’s claim that it was the first bank to publish an institutional stablecoin on a public blockchain could also be false. Berkman was explaining why SGF might be wrong. He referred to the AUDN stablecoin issued on Ethereum in March by National Australia Bank (NAB), which at the time claimed to be the second bank in the world to produce a stablecoin.
Berkman is “sure” that SGF will not be the first bank to launch a stablecoin on a public network; However, he expects more banks to follow suit in the coming months and states he is “sure” that SGF will not be the last bank to do so.
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