Societe Generale Subsidiary Launches Euro Stablecoin, but Faces Criticism Over Smart Contract Issues – Bitcoin News

According to Societe Generale-Forge (SG-Forge), a regulated subsidiary of the Societe Generale Group, the company has launched a euro-pegged stablecoin issued on the Ethereum blockchain. During the launch announcement, the CEO of SG-Forge stated that a stablecoin “built within a solid banking-grade architecture” will be key to increasing confidence in the native cryptocurrency ecosystem.

SG-Forge Unveils Institutional Grade Stablecoin EURCV

A new euro-denominated stablecoin is coming to the cryptocurrency ecosystem, issued by SG-Forge, the digital currency-focused subsidiary of French multinational investment bank and financial services firm Societe Generale. While the cryptocurrency industry already has a few euro-backed stablecoins issued by Circle Financial and Tether, SG-Forge’s euro stablecoin, EURCV, aims to be an institutional-grade token pegged to fiat currency. Thursday’s announcement by SG-Forge indicates that the approach includes creating measures in the digital asset space aimed at adding security and transparency to institutional investors.

The efforts are in line with banking, legal and regulatory requirements as part of the group’s overall strategy, according to the SG-Forge announcement. “Digital assets with stabilization mechanisms – i.e. stablecoins – built within a robust banking-grade structure will be key to increasing trust in the original crypto ecosystem,” said Jean-Marc Steinger, CEO of SG-Forge. statement.

Stinger added:

This issuance is a major step in SG-Forge’s roadmap to offer innovative solutions to its clients, whether real money institutions and companies or crypto-industry entities, and to facilitate the emergence of new market infrastructures based on blockchain technology.

according to etherscan.io dataThere is a maximum total supply of 10,000,000 EURCV as of today, with only one holder, indicating that SG-Forge has not yet distributed the stablecoin. So far, only two transfers have taken place since its creation 14 days ago on April 7, 2023. The contract hosted on etherscan states that the coin is an “official institutional euro stablecoin issued by Societe Generale-Forge.” Societe Generale’s euro stablecoin is being discussed on social media, and allegations emerge that SG-Forge’s EURCV contract administrator can take the money from owner f Burn their EURCV also.

Start Gopluslabs Web3 Security contract analyst He points out that there is a “risky element” added to the smart contract and three other elements that people should be aware of. The risk assessment notes that “the contract holder has the authority to modify the balance of tokens at other addresses, which may result in loss of assets.” The contract also has a “whitelist function,” which means “some addresses may not be able to trade normally,” according to Gopluslabs, a contract analyst. Software engineer Cygaar, who discovered some issues with SG-Forge’s EURCV contract, wondered why the bank decided to issue ERC20 in the first place.

What is the point of making this ERC20? Requested. “They would be better off using Onyx (JPM’s internal system) or some internal (database) since they are looking for a centralized settlement layer. ERC20 token does not fit their use case,” added the blockchain programmer.

What do you think the future holds for stablecoins issued by traditional financial institutions? Share your thoughts on this topic in the comments section below.

Jimmy Redman

Jamie Redman is the Chief News Officer at Bitcoin.com News and a financial and technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.