• A new euro-pegged stablecoin issued by the French bank Societe Generale-Forge (SGF) has been met with backlash from the crypto community due to its centralized control.
• The cryptocurrency, known as EUR CoinVertible (EURCV), is only available to qualified institutional customers after KYC and AML processes.
• Ethereum experts have criticized the coding process for the stablecoin, mocking it for its inefficiency and calling it a “laughingstock”.
New Euro Stablecoin Receives Backlash from Crypto Community
The French bank Societe Generale-Forge (SGF) recently introduced an Ethereum-based euro-pegged stablecoin called EUR CoinVertible (EURCV). As this cryptocurrency is only accessible to qualified institutional customers after going through certain Know Your Customer (KYC) and Anti-Money Laundering (AML) processes, several industry experts have expressed their criticism of the centralized control that this cryptocurrency is subject to.
Smart Contract Code Criticized by Ethereum Experts
Experts who analyzed the smart contract code for ERC-20 have highlighted that before a transaction can be completed, it must first be authorized by a centralized registrar controlled by the bank. An anonymous competent contract developer using the handle alephv.eth tweeted an explanation on April 20th mocking the coding process of the stablecoin and stated that they had to do a blockchain transaction to process user approvals. Another NFT and DeFi entrepreneur Foobar also criticized this code in his Twitter message calling it “the worst code I’ve ever seen”.
10 Million Tokens Already Mined
According to data from Etherscan, 10 million EURCV tokens were mined three days ago and one digital wallet address currently holds all these tokens in circulation.
General Public Waiting for Accessibility
At present, general public access is still not available for this new stablecoin but people are waiting eagerly for when they will be able to get their hands on it.
The introduction of this euro-pegged stablecoin was meant as a response to rising needs of settlement asset processing on blockchain networks but has unfortunately been met with criticism due to its lack of decentralization.