{"id":20093,"date":"2023-04-21T20:41:09","date_gmt":"2023-04-21T20:41:09","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/societe-generale-subsidiary-launches-euro-stablecoin-but-faces-criticism-over-smart-contract-issues-bitcoin-news\/"},"modified":"2023-04-21T20:41:09","modified_gmt":"2023-04-21T20:41:09","slug":"societe-generale-subsidiary-launches-euro-stablecoin-but-faces-criticism-over-smart-contract-issues-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/societe-generale-subsidiary-launches-euro-stablecoin-but-faces-criticism-over-smart-contract-issues-bitcoin-news\/","title":{"rendered":"Societe Generale Subsidiary Launches Euro Stablecoin, but Faces Criticism Over Smart Contract Issues \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to Societe Generale-Forge (SG-Forge), a regulated subsidiary of Societe Generale Group, the company has launched a stablecoin pegged to the euro and issued on the Ethereum blockchain. During the launch announcement, SG-Forge\u2019s CEO stated that a stablecoin \u201cbuilt under a robust banking-grade structure\u201d will be a key element to increase trust and confidence in the native cryptocurrency ecosystem.<\/strong><\/p>\n

SG-Forge Reveals Institutional-Grade Stablecoin EURCV<\/h2>\n

A new euro-denominated stablecoin is coming to the cryptocurrency ecosystem, issued by SG-Forge, a digital currency-focused subsidiary of the French multinational investment bank and financial services company Societe Generale. While the cryptocurrency industry already has a few euro-backed stablecoins issued by Circle Financial<\/a> and Tether, SG-Forge\u2019s euro stablecoin, EURCV, aims to be an institutional-grade, fiat-pegged token. SG-Forge\u2019s Thursday announcement notes that the approach involves creating measures in the realm of digital assets that aim to add security and transparency for institutional investors.<\/p>\n

The efforts are in harmony with banking, legal, and regulatory requirements as part of the group\u2019s overall strategy, according to SG-Forge\u2019s announcement. \u201cDigital assets with stabilisation mechanisms \u2013 i.e. stablecoins \u2013 built under a robust banking-grade structure will be a key element to increase trust and confidence in the native crypto ecosystem,\u201d said SG-Forge CEO Jean-Marc Stenger in a statement<\/a>.<\/p>\n

Stenger added:<\/p>\n

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This issuance is a major step in [SG-Forge\u2019s] roadmap to deliver innovative solutions to its clients, either real-money institutions and corporates or entities of the crypto industry, and to facilitate the emergence of new market infrastructures based on blockchain technology.<\/p>\n<\/blockquote>\n

According to etherscan.io data<\/a>, there is a maximum total supply of 10,000,000 EURCV as of today, with only one holder, suggesting that SG-Forge has not yet distributed the stablecoin. So far, only two transfers have been made since its creation 14 days ago on April 7, 2023. The contract hosted on etherscan shows that the coin is an \u201cofficial institutional euro stablecoin issued by Societe Generale-Forge.\u201d Societe Generale\u2019s euro stablecoin is being discussed on social media, and claims show that SG-Forge\u2019s EURCV contract admin can take funds<\/a> from an owner and burn their EURCV<\/a> as well.<\/p>\n

The Web3 security startup Gopluslabs\u2019 contract analyzer<\/a> indicates that there is a \u201crisky item\u201d added to the smart contract and three more items that people should be aware of. The risk assessment says \u201cthe contract owner has the authority to modify the balance of tokens at other addresses, which may result in a loss of assets.\u201d The contract also contains a \u201cwhitelist function,\u201d which means \u201csome addresses may not be able to trade normally,\u201d according to Gopluslabs\u2019 contract analyzer. Software engineer Cygaar, who discovered some of the issues with SG-Forge\u2019s EURCV contract, questioned why the bank decided to issue an ERC20 in the first place.<\/p>\n

\u201cWhat\u2019s the point of making this an ERC20? Cygaar asked<\/a>. \u201cThey\u2019d be much better off using Onyx (JPM\u2019s internal system) or some internal [database] since they\u2019re looking for a centralized settlement layer. An ERC20 token does not fit their use case,\u201d the blockchain programmer added.<\/p>\n

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Crypto Ecosystem<\/a>, Digital Assets<\/a>, ERC20<\/a>, Ethereum<\/a>, Fiat-Pegged<\/a>, institutional-grade<\/a>, Security<\/a>, SG-Forge<\/a>, Smart Contract<\/a>, Societe Generale<\/a>, Stablecoin<\/a>, Transparency<\/a><\/div>\n<\/div>\n

What do you think the future holds for stablecoins issued by traditional financial institutions? Share your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living 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 the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Hadrian \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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