The European stablecoin on the Ethereum blockchain by SGF bank is facing significant criticism in the crypto sector citing its centralised nature.
On 20 April 2023, The French bank Societe Generale-Forge (SGF) released EUR CoinVertible (EURCV). EURCV is a stablecoin on the Ethereum blockchain and SBF launched this stablecoin especially for its institutional clients. For now, this Ethereum stablecoin is not available for public or retail customers to use or test in any form.
Many experts in the crypto sector noted that EURCV’s smart contract is not better and also not decentralized.
A smart contract engineer aleph.eth noted that EURCV stablecoin users will be required to go through Bank’s authority to see the completion of the transaction, as the bank will approve the transaction in the final phase.
Non-Fungible Token (NFT) project founder “foobar” also shared his opinion on this stablecoin and said that this stablecoin is based on worse code & also said that it is not more than a laughing stock.
Crypto researcher Mason Versluis said that EURCV’s smart contract is horrible and also suggested French bank stop doing such experiments in the crypto sector.
Ethereum blockchain supporter Ryan Berckman noted that such criticism is very usual as they are taking steps opposite of the decentralized path but suggested people understand the situation because SGF bank is in the initial phase of development in the crypto sector and they will take time, as they already spend huge time in the traditional financial sector.