France releases stablecoin

France releases its own stablecoin? To a certain extent. French bank Societe Generale is launching a euro stablecoin based on Ethereum. The program code used is meanwhile causing harsh hostilities in the crypto scene.

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France releases stablecoin

France releases its own stablecoin. More precisely, the French bank Societe Generale-Forge (SGF) is responsible. The euro-based centralized stablecoin goes by the name of EUR CoinVertible (EURCV) and is based on Ethereum .

The EURCV exists there as an ERC-20 token. The bank itself considers the publication to be great progress. They are excited about the “first institutionally issued stablecoin on a public blockchain .”

The project is primarily intended to reach institutional investors and stimulate innovations there in the field of finance. Settlements between different parties should take place more effectively.

In addition, it can serve as an asset for companies that can be reached quickly on the blockchain and at the same time represents a cash equivalent.

Because the stablecoin is issued by a subsidiary of Societe Generale , there is no potential for conflict with regulators as with other stablecoin issuers. In addition, the EURCV was created in accordance with the upcoming regulations of the EU law MiCA .

“Digital assets with stabilization mechanisms – i.e. stablecoins – built within a robust, bank-ready structure will be a key element in boosting trust in the crypto ecosystem.” Explains Jean-Marc Stenger, Managing Director of SG-FORGE euphorically.

The bank wants to use the product to establish itself as a major player in the digital currency market. In the coming months, partnerships will be established with several crypto exchanges to promote the spread of the stablecoin.

Therefore, EURCV leads to harsh hostilities

The crypto scene is less hopeful about the new digital currency. Here the stablecoin is not seen as an innovative innovation, but as a terrible dystopia. The reason for this is how the ERC-20 token works.

The EURCV smart contract endows the issuer SG-FORGE with incredible privileges that are unusually restrictive even when compared to other centralized stablecoin issuers like Tether or Centre.

France launched a stablecoin on Ethereum and it's the worst code I've ever seen

Every ERC20 single transfer has to be approved in a separate eth tx submitted by a centralized registrar

What a laughingstock, is this your CBDC?https://t.co/hKkHiQTCyN pic.twitter.com/S6tRfh54wz
— foobar (@0xfoobar) April 20, 2023

«This is the worst program code I’ve ever seen. Each individual ERC20 transfer must be approved by a central registry. What a laugh. Is that your CBDC?” Writes the well-known programmer Foobar on Twitter.

Another user commented on the stablecoin as follows: “Absolutely terrible. Keep your centralized crap to yourself! Stop trying to smuggle it into the crypto market!”

The problem: Publisher SG-FORGE has such great powers that any transaction could easily be censored. This idea contradicts the basic principles of cryptocurrencies.

Industry leaders Tether and Center are also the target of constant criticism. They can freeze unwanted addresses and rob them of their funds. The French bank is now going one step further.

For the actual target group, this may not even be a problem. So far, no private individuals are permitted as users, only institutional investors who have to register in advance.

Ethereum developer Ryan Berckmans, on the other hand, shows understanding for the strategy of the French bank. He believes TradFi will slowly converge to the crypto industry habit to become competitive.