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

According to Societe Generale Forge (SG-Forge), a regulated subsidiary of Societe Generale Group, the company has launched a stable coin pegged to the euro and issued on the Ethereum blockchain The company has launched a stablecoin pegged to the euro and issued on the Ethereum blockchain. During the launch announcement, SG-Forge’s CEO said that the stablecoin, “built on a robust bank-grade structure,” will be a key element in building trust and confidence in the native cryptocurrency ecosystem.

SG-Forge unveils institutional-grade stablecoin EURCV

A new euro-denominated stablecoin issued by SG-Forge, a digital currency-focused subsidiary of French multinational investment bank and financial services firm Societe Generale, will be launched in the cryptocurrency ecosystem. While the cryptocurrency industry already has several euro-backed stave coins issued by Circle Financial and Tether, SG-Forge’s euro stave coin, EURCV, aims to be a fiat-peg token for institutional investors.SG- Forge said in an announcement Thursday that the approach will create measures in the area of digital assets aimed at adding security and transparency for institutional investors.

According to SG-Forge’s announcement, the initiative is part of the group’s overall strategy and is in harmony with banking, legal, and regulatory requirements.Jean-Marc Stenger, CEO of SG-Forge, said in astatementthat “with stabilization mechanisms digital assets, i.e., stablecoins built under a robust bank-grade structure, is a key element in increasing trust and confidence in the native crypto ecosystem” .

Stengel added that

The issuance is a major step in [SG-Forge]’s roadmap to provide innovative solutions to its customers, such as real money institutions and companies and crypto industry entities, and to facilitate the emergence of a new market infrastructure based on blockchain technology.

According to data frometherscan.io . As of today, there is a total supply of up to 10,000,000 EURCV and only one holder, suggesting that SG-Forge has not yet distributed this stablecoin. So far, only two transfers have been made since its creation 14 days ago on April 7, 2023. A look at the contract hosted on EtherScan shows that the coin is an “official institutional euro stablecoin issued by Societe Generale-Forge. “Societe Generale’s euro stablecoin has been discussed on social media, with claims that SG-Forge’s EURCV contract administratorcan take fundsfrom their owners and burntheir EURCVsas well.

Web3 security startup Gopluslabs’Contract Analyzershows that there are three additional “risk items” in smart contracts that people should be aware of. The risk assessment states that “the contract owner has the authority to modify token balances at other addresses, which could result in the loss of assets.” The contract also has a “whitelist feature,” which means that

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